Vaughn Company sells two types of pumps. One is large and is for commercial use. The other is smaller and is used in residential swimming pools. The following inventory data is available for the month of March. Units Price per Unit Total Residential Pumps Inventory at Feb. 28: 230 $ 460 $ 105,800 Purchases: March 10 575 $ 518 $ 297,850 March 20 460 $ 546 $ 251,160 March 30 345 GA $ 575 $ 198,375 Sales: March 15 575 $ 621 $ 357,075 March 25 460 $ 656 $ 301,760 Inventory at March 31: 575 Commercial Pumps Inventory at Feb. 28: 690 $ 920 $ 634,800 Purchases: March 3 690 $ 1,035 $ 714,150 March 12 345 $ 1,093 $ 377,085 March 21 575 $ 1,150 $ 661,250 Sales: March 18 1,035 $ 1.242 $ 1,285,470 March 29 690 $ 1,311 $ 904,590 Inventory at March 31: 575 In addition to the above information, due to a downturn in the economy that has hit Vaughn's commercial customers especially hard, Vaughn expects commercial pump prices from March 31 onward to be considerably different (and lower) than at the beginning of and during March. Vaughn has developed the following additional information. (a) Commercial Pumps Residential Pumps Net realizable value (per unit) $1,035 $667 The normal profit margin is 16.67% of cost. Vaughn uses the FIFO accounting method. Determine the dollar amount that Vaughn should report on its March 31 balance sheet for inventory. Assume Vaughn applies lower-of-cost-or-net realizable value at the individual product level. Total amount of inventory $ eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer
Vaughn Company sells two types of pumps. One is large and is for commercial use. The other is smaller and is used in residential swimming pools. The following inventory data is available for the month of March. Units Price per Unit Total Residential Pumps Inventory at Feb. 28: 230 $ 460 $ 105,800 Purchases: March 10 575 $ 518 $ 297,850 March 20 460 $ 546 $ 251,160 March 30 345 GA $ 575 $ 198,375 Sales: March 15 575 $ 621 $ 357,075 March 25 460 $ 656 $ 301,760 Inventory at March 31: 575 Commercial Pumps Inventory at Feb. 28: 690 $ 920 $ 634,800 Purchases: March 3 690 $ 1,035 $ 714,150 March 12 345 $ 1,093 $ 377,085 March 21 575 $ 1,150 $ 661,250 Sales: March 18 1,035 $ 1.242 $ 1,285,470 March 29 690 $ 1,311 $ 904,590 Inventory at March 31: 575 In addition to the above information, due to a downturn in the economy that has hit Vaughn's commercial customers especially hard, Vaughn expects commercial pump prices from March 31 onward to be considerably different (and lower) than at the beginning of and during March. Vaughn has developed the following additional information. (a) Commercial Pumps Residential Pumps Net realizable value (per unit) $1,035 $667 The normal profit margin is 16.67% of cost. Vaughn uses the FIFO accounting method. Determine the dollar amount that Vaughn should report on its March 31 balance sheet for inventory. Assume Vaughn applies lower-of-cost-or-net realizable value at the individual product level. Total amount of inventory $ eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
am. 160.
Transcribed Image Text:Vaughn Company sells two types of pumps. One is large and is for commercial use. The other is smaller and is used in residential
swimming pools. The following inventory data is available for the month of March.
Units
Price per
Unit
Total
Residential Pumps
Inventory at Feb. 28:
230
$
460
$
105,800
Purchases:
March 10
575
$
518
$
297,850
March 20
460
$
546
$
251,160
March 30
345
GA
$
575
$
198,375
Sales:
March 15
575
$
621
$
357,075
March 25
460
$
656
$
301,760
Inventory at March 31:
575
Commercial Pumps
Inventory at Feb. 28:
690
$
920
$
634,800
Purchases:
March 3
690
$ 1,035
$ 714,150
March 12
345
$ 1,093
$ 377,085
March 21
575
$ 1,150
$ 661,250
Sales:
March 18
1,035
$ 1.242
$ 1,285,470
March 29
690
$ 1,311
$ 904,590
Inventory at March 31:
575
In addition to the above information, due to a downturn in the economy that has hit Vaughn's commercial customers especially hard,
Vaughn expects commercial pump prices from March 31 onward to be considerably different (and lower) than at the beginning of and
during March. Vaughn has developed the following additional information.
(a)
Commercial
Pumps
Residential Pumps
Net realizable value (per unit)
$1,035
$667
The normal profit margin is 16.67% of cost. Vaughn uses the FIFO accounting method.
Determine the dollar amount that Vaughn should report on its March 31 balance sheet for inventory. Assume Vaughn applies
lower-of-cost-or-net realizable value at the individual product level.
Total amount of inventory
$
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