Award 770 out of 770 points california inc through no

This preview shows page 3 - 7 out of 10 pages.

Award: 7.70 out of 7.70 pointsCalifornia Inc., through no fault of its own, lost an entire plant due to an earthquake on May 1, 2016. In preparing its insurance claim on the inventory loss, the company developed the following data: Inventory January 1, 2016, $360,000; sales and purchases from January 1, 2016, to May 1, 2016, $1,200,000 and $925,000, respectively. California consistently reportsa 40% gross profit. The estimated inventory on May 1, 2016, is:$566,400.$530,000.$565,000.$625,000.
Beginning inventory$360,000 Plus: Net purchases925,000 Goods available for sale1,285,000 Less: Cost of goods sold:Net sales$1,200,000 Less: Estimated gross profit(480,000) Estimated cost of goods sold(720,000) Estimated ending inventory$565,000
4.Award: 7.70 out of 7.70 pointsData related to the inventories of Costco Medical Supply are presented below:SurgicalEquipmentSurgicalSuppliesRehabEquipmentRehabSuppliesSelling price$269 $126 $351 $158 Cost169 110 256 Costs to sell10 12 25 In applying the lower of cost and net realizable value rule, the inventory of surgical equipment would be valued at:154 11
5.Award: 7.70 out of 7.70 pointsData related to the inventories of Costco Medical Supply are presented below:SurgicalEquipmentSurgicalSuppliesRehabEquipmentRehabSuppliesSelling price$280 $137 $351 $162 Cost156 128 255 Costs to sell18 22 34 In applying the lower of cost and net realizable value rule, the inventory of surgical supplies would be valued at:163 6
6.Award: 0 out of 7.70 pointsData related to the inventories of Alpine Ski Equipment and Supplies is presented below:SkisBootsApparelSuppliesSelling price$180,000 $148,000 $119,000 $80,000 Cost145,000 140,000 77,350 52,000 Replacement cost118,000 123,000 97,350 48,000

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture