Data related to the inventories of Alpine Ski Equipment and Supplies is presented below: Skis Boots Apparel Supplies Selling price $ 180,000 $ 140,000 $ 120,000 $ 60,000 Cost 128,000 133,000 90,000 45,000 Replacement cost 120,000 130,000 110,000 41,000 Sales commission 10 % 10 % 10 % 10 % In applying the lower of cost or net realizable value rule, the inventory of boots would be valued at: A) $140,000. B) $133,000. C) $126,000. D) $130,000.

Data related to the inventories of Alpine Ski Equipment and Supplies is presented below: Skis Boots Apparel Supplies Selling price $ 180,000 $ 140,000 $ 120,000 $ 60,000 Cost 128,000 133,000 90,000 45,000 Replacement cost 120,000 130,000 110,000 41,000 Sales commission 10 % 10 % 10 % 10 % In applying the lower of cost or net realizable value rule, the inventory of boots would be valued at: A) $140,000. B) $133,000. C) $126,000. D) $130,000.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 7E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...

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Data related to the inventories of Alpine Ski Equipment and Supplies is presented below: Skis Boots Apparel Supplies Selling price $ 180,000 $ 140,000 $ 120,000 $ 60,000 Cost 128,000 133,000 90,000 45,000 Replacement cost 120,000 130,000 110,000 41,000 Sales commission 10 % 10 % 10 % 10 % In applying the lower of cost or net realizable value rule, the inventory of skis would be valued at: Multiple Choice $162,000. $128,000. $120,000. $180,000.
Data related to the inventories of Alpine Ski Equipment is shown below: Skis Boots Apparel Supplies Selling price $180,000 $150,000 $120,000 $60,000 Cost 128,000 133,000 90,000 45,000 Replacement cost 120,000 130,000 110,000 41,000 Sales commission 10% 10% 10% 10% Normal gross profit ratio 20% 20% 15% 15% In applying the LCM rule, the inventory of skis would be valued at: In applying the LCM rule, the inventory of boots would be valued at:
Data related to the inventories of Alpine Ski Equipment and Supplies is presented below: Skis Boots Apparel Supplies Selling price $ 164,000 $ 157,000 $ 116,000 $ 69,000 Cost 138,000 138,000 81,200 44,850 Replacement cost 133,000 112,000 101,200 40,850 Sales commission 10 % 10 % 10 % 10 % In applying the lower of cost or net realizable value rule, the inventory of skis would be valued at:
13) Data related to the inventories of Alpine Ski Equipment and Supplies is presented below: Skis Boots Apparel Supplies Selling price $ 180,000 $ 140,000 $ 120,000 $ 60,000 Cost 128,000 133,000 90,000 45,000 Replacement cost 120,000 130,000 110,000 41,000 Sales commission 10 % 10 % 10 % 10 % In applying the lower of cost or net realizable value rule, the inventory of skis would be valued at: A) $162,000. B) $128,000 C) $120,000. D) $180,000.
15) Data related to the inventories of Alpine Ski Equipment and Supplies is presented below: Skis Boots Apparel Supplies Selling price $ 180,000 $ 140,000 $ 120,000 $ 60,000 Cost 128,000 133,000 90,000 45,000 Replacement cost 120,000 130,000 110,000 41,000 Sales commission 10 % 10 % 10 % 10 % In applying the lower of cost or net realizable value rule, the inventory of apparel would be valued at: A) $108,000. B) $90,000. C) $110,000. D) $99,000.
Low-Tek Manufacturing Incorporated makes two types of industrial component parts - the B300 and the T500. The Income Statement for the most recent period is shown below: Low-Tek Manufacturing Incorporated Income Statement Sales Cost of goods sold Gross profit P2,100,000 1,600,000 500,000 550,000 Selling and administrative expenses Net operating loss P(50,000) Low-Tek produced and sold 70,000 units of B300 at a price of P20 per unit and 17,500 units of T500 at a price of P40 per unit. The company's traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor cost as the allocation based. Additional information relating to the company's two product lines is shown below: T500 TOTAL B300 P436,300 P251,700 P688,000 Direct materials Direct labor P200,000 P104,000 304,000 Manufacturing overhead Cost of goods sold 608,000 P1,600,000 The company has created an activity -based costing system to evaluate the profitability of its products.…
State Company manufactured a machine at a cost of $80,000. The product is sold for $88,000 at a 5% discount. The delivery costs are estimated to be $8,000. Under IFRS, how much should be the carrying amount of this inventory? $75,600 $80,000 $72,000 $88,000
The company ABC produces travelling leather bags sold at the price of 120$ each, thus realising revenues from bags sales in amount of 1.680.000$. The CEO highlighted the problem of inventory management, especially the problem of high inventory costs if leather as a basic raw material. For each bag 1.25 squared meter of leather is used. The price of the leather is 50$ per 1square meter. The purchase department manager reported that the annual carrying cost per 1square meter of leather is 10% of the value, while the ordering costs per order have increased to 120$ per order. So far they have made equal orders every two months (60days), but now the company Board asked the OPTIMAL ordering quantity to be made, so to minimize the total inventory costs for the leather. a)an optimal quantity of leather in square meters and compare with the current one b) compare the total inventory cost that the company will pay if they plays current order, with the leather inventory costs for placing optimal…
A manufacturer of exercise equipment purchases the pulley section of the equipment from a supplier who lists these prices: less than 1,000, $5 each; 1,000 to 3,999, $4.95 each; 4,000 to 5,999, $4.90 each; and 6,000 or more, $4.85 each. Ordering costs are $50, annual carrying costs per unit are 40 percent of purchase cost, and annual usage is 4,900 pulleys. Determine an order quantity that will minimize total cost. What is the Total Cost at the feasible solution. Round your answer to the nearest ten dollars.
GC manufactured a range of bicycles and holds an inventory of certain bicycle parts. Part number 1258 costs P8.00 per unit. GC expects to use 8,000 units of part 1258 per year. Ordering costs have been calculated at P150 per order and nventory holding costs have been estimated at P2.75 per unit per year. The supplier of part number1258 has offered a 2% discount off the purchase price if each order is for 2,000 units or more.Required: a. Calculate the economic order quantity for 1258, assuming no discount is given. b. State whether GC should accept the discount offered. (show your workings).
The following is the income statement of Marielle Hotel for the Year ended December 31,2021 Marielle Hotel Income Statement For the Year Ended December 31, 2021 Sales (20,000 units) P300,000 Less: Cost of Goods Sold 180,000 Gross Income 120,000 Less: Selling Price and Administrative Expenses 80,000 Operating Income P40,000 Other Data: 1/3 of the cost of good sold is fixed 75% of the selling and administrative expenses is variable. Required: Compute for the new Income Statement
Rugged Outfitters purchases one model of mountain bike at a wholesale cost of $520 per unit and resells it to end consumers. The annual demand for the company’s product is 49,000 units. Ordering costs are $500 per order and carrying costs are $100 per bike per year, including $40 in the opportunity cost of holding inventory. Q. Assume that when evaluating the manager, the company excludes the opportunity cost of carrying inventory. If the manager makes the EOQ decision excluding the opportunity cost of carrying inventory, the relevant carrying cost would be $60, not $100. How would this affect the EOQ amount and the actual annual relevant cost of ordering and carrying inventory?

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	Skis		Boots	Apparel		Supplies
Selling price	$	180,000		$	140,000		$	120,000		$	60,000
Cost		128,000			133,000			90,000			45,000
Replacement cost		120,000			130,000			110,000			41,000
Sales commission		10	%		10	%		10	%		10	%