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ACT3391HomeworkFall2009solutions29to32

# ACT3391HomeworkFall2009solutions29to32 - HOMEWORK Fall 2009...

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HOMEWORK - Fall 2009 29. (2 points) The December 31, 2010 inventory of Gwynn Company. Replacement Estimated Expected Normal Profit Product Original Cost Cost Disposal Cost Selling Price on Sales A \$25.00 \$22.00 \$6.50 \$40.00 20% B \$42.00 \$40.00 \$12.00 \$48.00 25% C \$120.00 \$115.00 \$25.00 \$190.00 30% D \$18.00 \$15.80 \$3.00 \$26.00 10% Using the lower-of-cost-or-market approach applied on an individual-item basis, compute the inventory valuation that should be reported for each product on December 31, 2010. Replace Cost NRV (SP – disposal) NRV – normal profit DMV LCM A \$22.00 \$33.50 \$25.50 \$25.50 \$25.00 B \$42.00 \$36.00 \$24.00 \$36.00 \$36.00 C \$115.00 \$165.00 \$108.00 \$115.00 \$115.00 D \$15.80 \$23.00 \$20.40 \$20.40 \$18.00 30. (1.5 points) \$60,000 of goods on hand as of March 12. The following additional data is available from the books: Inventory on hand, March 1 \$ 84,000 Net purchases received, March 1 – 11 63,000 Sales (goods delivered to customers) 120,000 Past records indicate that sales are made at 50% above cost. Estimate the inventory of goods on hand at the close of
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