ORIE_350_Homework__4_fall_2007 - medical supplies to...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
ORIE 350 Homework #4 Due September 25, 2007. 1. The Boswell Boat Supply Company has two inventory items on hand. Boswell has found that the items would need to be refurbished before they could be sold, and the replacement cost of each of these items has changed. Boswell Company may need to adjust the inventory cost of the items. Find the correct cost for each item, and provide the journal entry needed (if any) to make the adjustment in their financial records. Item Number of units on hand Historical Cost per unit Replacement Cost per unit Selling Price per unit Normal Profit per unit Refurbishing Costs per unit Tension Strap 4 $80 $65 $110 $40 5 Boat Winch 8 150 120 180 70 10 2. Robert Angus is the inventory manager at Jersey Medical Supplies, a distributor of
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: medical supplies to clinics and hospitals. Angus notes the following inventory of a popular surgical instrument, the Zangmeister, during October: Date Explanation Units Unit Cost Unit Price 10/1 Beginning Inventory 26 $197 10/5 Sale 14 $320 10/12 Purchase 45 $204 10/13 Sale 25 $340 10/15 Sale 25 $360 10/19 Purchase 50 $212 10/27 Sale 40 $355 Jersey Medical Supplies uses a periodic FIFO inventory system, updated monthly. a) Find the dollar amount allocated to the Ending Inventory under this method. b) Find the gross margin for the month for the Zangmeister. From the text: End of Chapter 7 exercises/problems: 20, 29 End of Chapter 8 exercises/problems: 20, 30, 37...
View Full Document

Ask a homework question - tutors are online