Team+C+Week+3+P9-9+a (2)

Team+C+Week+3+P9-9+a (2) - 65,900 64,800 \$69,000 \$4,200 =...

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Prepare the inventory section of Brook's balance sheet as of November 30, 2007, including any required notes. Cost Market L-o-C-o-M Down tube shifter Standard model \$67,500 \$67,000 \$67,000 Click adjustment model 94,500 87,000 87,000 Deluxe model 108,000 110,000 108,000 Total down tube shifters 270,000 264,000 262,000 Bar end shifter Standard model 83,000 90,050 83,000 Click adjustment model 99,000 97,550 97,550 Total bar end shifters 182,000 187,600 180,550 Head tube shifter Standard model 78,000 77,650 77,650 Click adjustment model 117,000 119,950 117,000 Total head shifters 195,000 196,950 194,650 Calculation 1: Total finished goods \$647,000 \$648,550 \$637,200 \$240,000 x .50 = \$120,000 (at cost value of deraileurs) \$240,000/120 x 100 = \$100,000 (market value of deraileurs) Cost Market L-o-C-o-M \$127,400+\$100,000=\$227,400 (market value of all raw materials) Work in process \$112,500 \$108,700 \$108,700 Raw materials (Calculation 1) 240,000 227,400 227,400 Calculation 2: Factory supplies (Calculation 2) 64,800
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Unformatted text preview: 65,900 64,800 \$69,000 - \$4,200 = \$64,800 \$417,300 \$402,000 \$400,900 Brooks Balance Sheet November 30, 2007 Inventories Finished goods \$637,200 Raw materials 227,400 Factory supplies 64,800 Work in process 108,700 Total \$1,038,100 Notes 1. Company valued Finished goods inventory at the lower of cost or market method to individual items. 2. Company valued Raw materials, factory supplies, and work in process inventories at the lower of cost or market method by inventory. 3. Half of the tube shifter valued \$228,325 (=\$456,650/2) is held by catalog outlets on consignment. Catalog outlets Down tube shifter \$131,000 (= \$262,000/2) Head tube shifter 97,325 (= \$194,650/2) Total \$228,325 (= \$456,650/2) 4. Three quarters of the bar end shifters valued \$135,412.5 of the bar end finished goods has been pledged as collateral security for a bank loan. (\$180,550 x .75 = \$135,412.50) (Unadj. Factory supplies - obsolete factory supplies = adj. factory supplies cost)...
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This note was uploaded on 03/01/2012 for the course ACC all taught by Professor All during the Spring '12 term at University of Phoenix.

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