Headlands Industries sells coffee beans, which are sensitive to price fluctuations. The following inventory information is available for this product at December 31, 2017: Unit Cost Coffee Bean Units Market Market Coffea arabica 12,100 bags Coffea robusta $5.50 $5.46 5,200 bags 3.40 3.50 Calculate Tascon's inventory by applying the lower-of-cost-or-market basis. Tascon's inventory $1
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- Moore Company uses the LIFO cost flow assumption and carries Product A in inventory on December 31, 2019, at its unit cost of 9.50. Because of a sharp decline in demand for the product, the selling price was reduced to 10.00 per unit. Moores normal profit margin on Product A is 2.00, disposal costs are 1.00 per unit, and the replacement cost is 6.50. Under the lower of cost or market rule, Moores December 31, 2019, inventory of Product A should be valued at a unit cost of: a. 6.50 b. 9.00 c. 7.00 d. 9.50Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net realizable value of 300, a normal profit margin of 35, and a current replacement cost of 250. Determine the amount per unit that should be used as the market value to apply the lower of cost or market rule to determine Blacks ending inventory.Webster Company adopted do liar-value LIFO on January 1, 2019. Webster produces three products: X, Y, and Z. Websters beginning inventory consisted of the following: During 2019, Webster had the following purchases and sales: Required: 1. Compute the LIFO cost of the ending inventory assuming Webster uses a single inventory pool. Round cost index to 4 decimal places. 2. Compute the LIFO cost of the ending inventory assuming Webster uses three inventory pools. Round cost indexes to 4 decimal places.
- FlinFlon Limited sells three products whose prices are sensitive to price fluctuations. The following inventory information is available for these products at March 31, 2018: Product Units Unit Cost Net Realizable Value A 25 $ 7 $ 7 B 30 6 8 C 60 11 10 Instructions: Calculate FlinFlon's inventory at the Lower of Cost and Net Realizable Value (LCNRV). Prepare any journal entry required to record the LCNRV, assuming that FlinFlon uses a perpetual inventory system.Shamrock, Inc. uses the lower-of-cost-or-market basis for its inventory. The following data are available at December 31. Units Cost per Unit Market per Unit Cameras Minolta 5 $187 $173 Canon 7 160 170 Light Meters Vivitar 12 116 108 Kodak 10 114 125 What amount should be reported on Shamrock, Inc.’s financial statements, assuming the lower-of-cost-or-market rule is applied? Total $Enter a dollar amount that should be reported on Shamrock, Inc.’s financial statementsWilliam Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company’s inventory records as of December 31, 2017. Item Quantity Unit Cost ReplacementCost/Unit Estimated SellingPrice/Unit Completion & DisposalCost/Unit Normal ProfitMargin/Unit A 1,800 $9.15 $10.25 $12.81 $1.83 $2.20 B 1,500 10.00 9.64 11.47 1.10 1.46 C 1,700 6.83 6.59 8.78 1.40 0.73 D 1,700 4.64 5.12 7.69 0.98 1.83 E 2,100 7.81 7.69 8.17 0.85 1.22 Jane Doe is an accounting clerk in the accounting department of William Co., and she cannot understand why the market value keeps changing from replacement cost to net realizable value to something that she cannot even figure out. Jane is very confused, and she is the one who records inventory purchases and calculates ending inventory. You are the manager of…
- Sugar Company has the policy of valuing inventory at the lower of cost and net realizable value. Data pertainingto its three classes of sugar products follow: Splendid Regular White MuscovadoEstimated selling price/unit P3,000 P2,000 P2,500Estimated cost to sell/unit 600 400 500Cost per unit 2,500 1,500 1,300Number of units (50 kilo bags) 200 500 250 Question:How much inventory should be shown in Sugary Company's December 31 statement of financial position? A. P1,555,000B. P2,225,000C. P3,850,000D. Not givenThe manager of a superior products ltd. is considering shifting from the weighted average cost method for valuing inventory to either the first in first out method (FIFO) or last in last out (LIFO) method. The following information relates to the company's material inventory. UNIT UNIT COST January 1, 2016 (begining inventory) 800 $10.00 Purchases: January 5,2016 1500 $12.00 June 25,2016 1200 $12.50 September 12, 2016 600 $14.00 November 24, 2016 900 $15.50 A physical inventory taken in December 31,2016, showed 1500units on hand. Superior products uses a periodic inventory system. Prepare a…Sandhill Co. uses a perpetual inventory system and the FIFO cost formula for valuing inventory. The company is now in the process of comparing the cost of its inventory with its net realizable value. The following data are available at Sandhill Co.’s year end, December 31: Units Unit Cost Net Realizable Valueper Unit Clothing 93 $7 $5 Jewellery 75 20 22 Greeting cards 42 1 4 Stuffed toys 52 11 40 (a) Determine the lower of cost and net realizable value of the ending inventory assuming Sandhill Co. applies LCNRV on individual items. Lower of cost and net realizable value
- Home Stop sells two product categories, furniture and accessories. Information pertaining to its 2021 year-end inventory is as follows: Inventory, Per Unit By Product Category Quantity Cost Market Furniture: Chairs 40 $40 $ 46 Desks 20 88 73 Tables 60 99 107 Accessories: Rugs 30 75 63 Lamps…Sandhill Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2017, included product X. Relevant per-unit data for product X are as follows. Estimated selling price $51 Cost 42 Estimated selling costs 15 Normal profit 9 There were 920 units of product X on hand at December 31, 2017. Product X was incorrectly valued at $41 per unit for reporting purposes. All 920 units were sold in 2018.Compute the effect of this error on net income for 2017 and the effect on net income for 2018, and indicate the direction of the misstatement for each year.The following information pertains to Julia & Company: March 1 Beginning inventory = 31 units @ $5.50 March 3 Purchased 16 units @ 4.00 March 9 Sold 27 units @ 8.60 What is the cost of goods sold for Julia & Company assuming it uses LIFO? (Do not round your intermediate calculations. Round your answer to the nearest dollar amount.) Multiple Choice $125. $149. $114. $108.
