Question
In: Accounting
Departures from Acquisition Cost Determine the proper total inventory value for each of the following items...
Departures from Acquisition Cost Determine the proper total inventory value for each of the following items in Packer Company’s ending inventory:
- Packer has 60 model X3 cameras in stock. The cameras cost $260 each, but their year-end replacement cost is only $240. Packer has been selling the cameras for $310, but competitors are now selling them for $280. Packer plans to match the selling price at $280. Packer’s normal gross profit on cameras is 35 percent.
- Packer has 550 rolls of film that are past the expiration date since film is now a slow moving item. The film cost $1.90 each and normally sells for $3.90. New replacement film still costs $1.90. Packer has put the expired film on clearance and is selling it for $1.40 per roll. There are no related selling costs.
- Packer has four computers in stock that have been used as demonstration models. These computers cost $500 and normally sell for $650. Because they are used, Packer is selling them for $450 each. Expected selling costs are $60 per computer. New models of the computer (on order Z) will cost Packer $520 and will be priced to sell at $690.
Solutions
ekkarill92 answered 9 months agoRelated Solutions
Lower-of-Cost-or-Market Inventory On the basis of the following data, determine the value of the inventory at...
Lower-of-Cost-or-Market Inventory
On the basis of the following data, determine the value of the
inventory at the lower of cost or market. Assemble the data in the
form illustrated in Exhibit 10.
Product
Inventory
Quantity
Cost Per
Unit
Market Value per Unit
(Net Realizable Value)
Class 1:
Model A
19
$299
$295
Model B
23
78
86
Model C
44
237
241
Class 2:
Model D
9
78
83
Model E
9
244
228
a. Determine the value of the...
Lower-of-Cost-or-Market Inventory On the basis of the following data, determine the value of the inventory at...
Lower-of-Cost-or-Market Inventory
On the basis of the following data, determine the value of the
inventory at the lower of cost or market. Assemble the data in the
form illustrated in Exhibit 10.
Product
Inventory
Quantity
Cost Per
Unit
Market Value per Unit
(Net Realizable Value)
Class 1:
Model A
10
$164
$144
Model B
20
253
269
Model C
47
48
33
Class 2:
Model D
26
48
37
Model E
35
49
37
a. Determine the value of the...
Lower-of-Cost-or-Market Inventory On the basis of the following data, determine the value of the inventory at...
Lower-of-Cost-or-Market Inventory
On the basis of the following data, determine the value of the
inventory at the lower of cost or market. Assemble the data in the
form illustrated in Exhibit 10.
Product
Inventory
Quantity
Cost Per
Unit
Market Value per Unit
(Net Realizable Value)
Class 1:
Model A
300
$140
$125
Model B
500
90
112
Model C
150
60
59
Class 2:
Model D
800
120
115
Model E
400
140
145
a. Determine the value of the...
Lower-of-Cost-or-Market Inventory On the basis of the following data, determine the value of the inventory at...
Lower-of-Cost-or-Market Inventory
On the basis of the following data, determine the value of the
inventory at the lower of cost or market. Assemble the data in the
form illustrated in Exhibit 10.
Product
Inventory
Quantity
Cost Per
Unit
Market Value per Unit
(Net Realizable Value)
Class 1:
Model A
32
$256
$251
Model B
8
94
79
Model C
18
178
194
Class 2:
Model D
23
247
263
Model E
34
98
77
a. Determine the value of the...
1. Lower-of-Cost-or-Market Inventory On the basis of the following data, determine the value of the inventory...
1. Lower-of-Cost-or-Market Inventory
On the basis of the following data, determine the value of the
inventory at the lower of cost or market. Assemble the data in the
form illustrated in Exhibit 9.
Inventory
Item
Inventory
Quantity
Cost per
Unit
Market Value per Unit
(Net Realizable Value)
Birch
43
$244
$231
Cypress
15
68
58
Mountain Ash
37
230
245
Spruce
49
151
170
Willow
43
113
111
Inventory at the Lower of Cost or Market
Inventory Item
Total Cost...
Determine the unit value that should be used for inventory costing following "lower of cost or...
Determine the unit value that should be used for inventory
costing following "lower of cost or market value" as described in
ARB No. 43. A B C D E F Cost $2.35 $2.45 $2.35 $2.63 $2.47 $2.47
Replacement cost 1.95 2.55 1.95 2.61 2.37 2.49 Net realizable value
2.50 2.50 2.50 2.43 2.53 2.53 Net realizable value less normal
profit 2.25 2.30 2.40 2.25 2.33 2.33 Case A $ Case B $ Case C $
Case D $ Case E...
Cullumber Corporation acquired two inventory items at a lump-sum cost of $85000. The acquisition included 2670...
Cullumber Corporation acquired two inventory items at a lump-sum
cost of $85000. The acquisition included 2670 units of product CF,
and 5340 units of product 3B. CF normally sells for $30 per unit,
and 3B for $10 per unit. If Cullumber sells 890 units of CF, what
amount of gross profit should it recognize?
Briefly describe the proper accounting (financial reporting) for each of the following items: a. Change in...
Briefly describe the proper accounting (financial reporting) for
each of the following items:
a. Change in Accounting Principle
B. change in accounting estimate
c. errors (mistakes or oversights) uncovered in previously
issued financial statements
Using the lower of cost or market rule, determine the proper unit value for balance sheet...
Using the lower of cost or market
rule, determine the proper unit value for balance sheet reporting
purposes for each of the inventory items listed below. Do this by
a) calculating the designated market value and b) calculating the
lower of cost or market.
Item
Replacement
Cost
Ceiling
Floor
Designated
Market
Cost
Lower of
cost or
market
Books
$15.00
$14.00
$12.80
$16
Spoons
17.20
19.20
17.60
16
Plates
12.80
15.20
13.60
16
Candles
9.60
10.40
8.80
16
Lamps
16.80
16.40...
Determine the estimated total cost and cost per unit of each product
Hannah Ortega is considering expanding her business. She plans to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for a trade show are expected to be $15,680. The booth will be open 32 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $188 per package. She will continue to sell the existing product, EZRecords, which costs $108 per package. Ms. Ortega...
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