Chapter 5, Problem 29P

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How many units would need to be sold?

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In September, one of the processing departments at Anderson Manufacturing had ending work in process inventory of $15,600. During the month, $525,000 of costs were added to production and the cost of units transferred out from the department was $538,000. In the department's cost reconciliation report for September, what was the cost of beginning work in process inventory for the department?

Viola Enterprises purchased an item for inventory that cost $25 per unit and was priced to sell at $40. It was determined that the replacement cost is $22 per unit. Using the lower-of-cost-or-market value, what amount should be reported on the balance sheet for inventory?

A stock sells for $20 per share. What is the book value of the company if the price-to-book value ratio is 1.6 and it has 120,000 shares of stock outstanding? Answer?

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