Hw.19. KitchenArt Co. usually purchases its mixer inventory from Johnson Company every quarter and each quarter KitchenArt purchases 500 mixers. Johnson's whole sale price for each mixer is $35. On November 15, 2014, KitchenArt received an offer from Allison Company who offered $25 for each mixer if KitchenArt purchases 2,000 mixers or more from Allison. KitchenArt still had 1,000 mixer in its inventory on November 15, 2014. Which of the following statement is NOT true? Johnson is KitchenArt's usual supplier. KitchenArt does not need to write down its ending inventory. The $25 price cannot be regarded as the market price for the mixer. KitchenArt should write down its ending inventory according to LOCM
Hw.19. KitchenArt Co. usually purchases its mixer inventory from Johnson Company every quarter and each quarter KitchenArt purchases 500 mixers. Johnson's whole sale price for each mixer is $35. On November 15, 2014, KitchenArt received an offer from Allison Company who offered $25 for each mixer if KitchenArt purchases 2,000 mixers or more from Allison. KitchenArt still had 1,000 mixer in its inventory on November 15, 2014. Which of the following statement is NOT true? Johnson is KitchenArt's usual supplier. KitchenArt does not need to write down its ending inventory. The $25 price cannot be regarded as the market price for the mixer. KitchenArt should write down its ending inventory according to LOCM
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 6E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...
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Hw.19.
KitchenArt Co. usually purchases its mixer inventory from Johnson Company every quarter and each quarter KitchenArt purchases 500 mixers. Johnson's whole sale price for each mixer is $35. On November 15, 2014, KitchenArt received an offer from Allison Company who offered $25 for each mixer if KitchenArt purchases 2,000 mixers or more from Allison. KitchenArt still had 1,000 mixer in its inventory on November 15, 2014. Which of the following statement is NOT true?
Johnson is KitchenArt's usual supplier.
KitchenArt does not need to write down its ending inventory.
The $25 price cannot be regarded as the market price for the mixer.
KitchenArt should write down its ending inventory according to LOCM
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