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ACC 210P Chapter 6

# ACC 210P Chapter 6 - A physical count of inventory on...

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ACC 210P Chapter 6 1. The Entertainment Center accumulates the following cost and market data at December 31. Inventory Cost Market Categories Data _ _ Data_ Camera \$11,000 \$10,200 Camcorders 8,000 8,500 DVDs 14,000 12,000 What is the lower of cost or market value of the inventory?

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2. At December 31, 2007, the following information (in thousands) was available for retailer, Store Inc.: ending inventory \$22,600; beginning inventory \$21,400; cost of good sold \$171,000; and sales revenue \$430,000. Calculate the inventory turnover ratio and days in inventory for Stores.
3. available: Units Unit Cost Total Cost 1/1 Beginning Inventory 100 \$3 \$ 300 1/20 Purchase 500 \$4 2,000 7/25 Purchase 100 \$5 500 10/20 Purchase 300 \$6 1,800 1,000 \$4,600 A physical count of inventory on December 31 revealed that there were 375 units on
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Unformatted text preview: A physical count of inventory on December 31 revealed that there were 375 units on hand. Instructions Answer the following independent questions and show computations supporting your answers. 1. Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is \$__________. 2. Assume that the company uses the average cost method. The value of the ending inventory on December 31 is \$__________. 3. Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is \$__________. 4. Determine the difference in the amount of income that the company would have reported if it had used the FIFO method instead of the LIFO method. Would income have been greater or less?...
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