ACT3391HomeworkFall2009solutions29to32

ACT3391HomeworkFall2009solutions29to32 - HOMEWORK - Fall...

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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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This note was uploaded on 03/03/2011 for the course ACCT 3391 taught by Professor Turpin during the Spring '10 term at Troy.

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