 # Inventory Costing and LCM J&amp;J Enterprises sells paper cups to fast-food franchises. On January 1, 2019, J&amp;J had 5,000 cups on hand, for which it had paid $0.10 per cup. During 2019, J&amp;J made the following purchases and sales: During 2019, J&amp;J sold 240,000 cups at$0.35 per cup (80,000 cups were sold on April 2 and 160,000cups were sold on October 20), leaving an ending inventory of 7,000 cups. Assume that J&amp;J uses a perpetual inventory system. J&amp;J uses the lower of cost or market for its inventories, as required by generally accepted accounting principles. Required: 1. Assume that the market value of the cups is $0.38 per cup on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 2. Assume that the market value of the cups is$0.12 per cup on December 31, 2019. Compute the cost of ending inventory using the FIFO and average cost methods, and then apply LCM. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) ### Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
Publisher: Cengage Learning
ISBN: 9781337690881 ### Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
Publisher: Cengage Learning
ISBN: 9781337690881

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