Question
In: Accounting
Football teams ending inventory includes the following items product units cost per unit market per unit...
Football teams ending inventory includes the following items
| product | units | cost per unit | market per unit |
| caps | 200 | $15 | $22 |
| travel Jerseys | 55 | $40 | $125 |
| windbreakers | 18 | $60 | $85 |
| signature stadium cushions | 500 | $20 | $10 |
Compute the lower of cost or market for the ending inventory separately for each product.
| per unit | per unit | total inventory | total inventory | |||
| inventory items | units | cost | market | cost | market | LCM Applied to individual items |
| caps | ||||||
| travel jerseys | ||||||
| windbreakers | ||||||
| signature stadium cushion |
Solutions
Expert Solution
The total ending Inventory cost is value at lower of cost or Net realisable value. This allocation is based on for each Individual units and component of Inventory rather than inventory in total.
Based on the information given, the calculation of Ending Inventory will be as follows:
| Inventory Items | Units | Per unit cost | Per unit Market price | Total Inventory at cost | Total Inventory at market price | Ending Inventory value - Lower of cost or market value |
| Caps | 200 | $ 15 | $ 22 | $ 3,000 | $ 4,400 | $ 3,000 |
| Travel Jerseys | 55 | $ 40 | $ 125 | $ 2,200 | $ 6,875 | $ 2,200 |
| Windbreakers | 18 | $ 60 | $ 85 | $ 1,080 | $ 1,530 | $ 1,080 |
| Signature stadium cushions | 500 | $ 20 | $ 10 | $ 10,000 | $ 5,000 | $ 5,000 |
| Total | 773 | $ 16,280 | $ 17,805 | $ 11,280 |
ekkarill92 answered 1 year agoRelated Solutions
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On the basis of the following data:
Product
Inventory
Quantity
Cost per
Unit
Market Value per Unit
(Net Realizable Value)
Model A
13
$198
$223
Model B
42
63
56
Model C
36
126
144
Model D
13
241
237
Model E
33
144
152
Determine the value of the inventory at the lower of cost or
market. Assemble the data in the form illustrated in Exhibit 9.
Inventory at the Lower of Cost or Market
Product
Total...
Lower-of-Cost-or-Market Inventory On the basis of the following data: Product Inventory Quantity Cost per Unit Market...
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On the basis of the following data:
Product
Inventory
Quantity
Cost per
Unit
Market Value per Unit
(Net Realizable Value)
Model A
12
$106
$102
Model B
45
84
70
Model C
36
254
243
Model D
31
85
88
Model E
41
132
148
Determine the value of the inventory at the lower of cost or
market. Assemble the data in the form illustrated in Exhibit 9.
Inventory at
the Lower of Cost or Market
Product
Total...
The standard cost of product 777 includes 2.70 units of direct materials at $5.80 per unit....
The standard cost of product 777 includes 2.70 units of direct
materials at $5.80 per unit. During August, the company bought
28,500 units of materials at $5.90 and used those materials to
produce 10,800 units.
Compute the total, price, and quantity variances for
materials.
Total materials variance
$
Neither favorable nor
unfavorableFavorableUnfavorable
Materials price variance
$
...
The standard cost of product 777 includes 2.40 units of direct materials at $6.80 per unit....
The standard cost of product 777 includes 2.40 units of direct
materials at $6.80 per unit. During August, the company bought
29,300 units of materials at $7.05 and used those materials to
produce 12,400 units.
Compute the total, price, and quantity variances for
materials.
Total materials variance
$
FavorableNeither favorable nor
unfavorableUnfavorable
Materials price variance
$
...
Ross Electronics has one product in its ending inventory. Per unit data consist of the following: cost, $20
Ross Electronics has one product in its ending inventory. Per unit data consist of the following: cost, $20; replacement cost, $18; selling price, $30; selling costs, $4. The normal profit is 30% of selling price. What unit value should Ross use when applying the lower of cost or market (LCM) rule to ending inventory?
Inventory Write-Down The following information is taken from Aden Company's records: Product Group Units Cost/Unit Market/Unit...
Inventory Write-Down
The following information is taken from Aden Company's
records:
Product
Group
Units
Cost/Unit
Market/Unit
A
1
700
$1.10
$0.90
B
1
300
1.50
1.55
C
2
150
4.90
5.15
D
2
100
6.50
6.40
E
3
80
25.00
24.60
Required:
What is the correct inventory value if the company applies the
LCNRV rule to each of the following?
Individual items
Product A
$
Product B
Product C
Product D
Product E
Total inventory value
$
Groups of items...
The following data refer to Bear Company's ending inventory: Item code Quantity Unit Cost Unit Market...
The following data refer to Bear Company's ending inventory:
Item code
Quantity
Unit Cost
Unit Market
Small
100
$228
$232
Medium
420
152
176
Large
600
168
176
Extra-Large
220
268
256
How much is the inventory if the lower of cost or market rule is
applied to each item of inventory?
Select one:
A. $252,640
B. $243,760
C. $265,440
D. None of the above
Using the specific identification method: Date Units purchased Cost per unit Ending inventory March 1 20...
Using the specific identification method:
Date
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purchased
Cost per unit
Ending
inventory
March 1
20 Xbox?s
360
$
275
5
Xbox?s from March
April 1
41 Xbox?s
360
250
11 Xbox?s from
April
May 1
70 Xbox?s
360
240
8 Xbox?s from
May
a. Calculate the ending inventory.
Ending inventory
$
b. Calculate the cost of goods sold.
Cost of goods sold
$
Using the specific identification method: Date Units purchased Cost per unit Ending inventory March 1 15...
Using the specific identification method: Date Units purchased
Cost per unit Ending inventory March 1 15 Xbox′s 360 $ 275 2 Xbox′s
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Xbox′s 360 240 12 Xbox′s from May
a. Calculate the ending inventory.Ending inventory $:
b. Calculate the cost of goods sold. Cost of goods sold $:
Ross Electronics has one product in its ending inventory. Per unit data consist of the following:...
Ross Electronics has one product in its ending inventory. Per
unit data consist of the following: cost, $25; replacement cost,
$23; selling price, $35; selling costs, $8. The normal profit is
30% of selling price.
What unit value should Ross use when applying the lower of cost or
market (LCM) rule to ending inventory?
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