Your answer Lower of Cost or Market Stiles Corporation uses the lower of cost

Your answer lower of cost or market stiles

This preview shows page 11 - 13 out of 13 pages.

11.Your answer:Lower of Cost or MarketStiles Corporation uses the lower of cost or market rule for each of two products in its ending inventory. A profit margin of 30% on the selling price is considered normal foreach product. Specific data for each product are as follows:Required:1. What is the correct inventory value for each product? 2. Stiles Corporation uses the lower of cost or market rule for products in its ending inventory. A profit margin of 30% on the selling price is considered normal. Product A 12.Your answer:Retail Inventory MethodThe company reported the following information for the month:CostRetailInventory, January 1$40,000$60,000Purchases in January40,00070,000Sales for the month totaled $96,000. Compute the estimated cost of inventory on hand at the end of the month using the average cost assumption. Round percentage
Image of page 11
12/7/2014 Assignment 12 12/13 13.Your answer:Lower of Cost or MarketThe following information is taken from Aden Company's records:Required:What is the correct inventory value if the company applies the lower of cost or market to each of the following? When required, round your answers to the nearest cent.SpreadsheetSpreadsheetSpreadsheetSpreadsheetSpreadsheetSpreadsheetSpreadsheetSpreadsheetSpreadsheetSpreadsheetSpreadsheetSpreadsheetSpre 1. Individual items Product A $ 480 Product B 375 Product C 750 Product D 640 Product E 1,968 Total inventory value $ 4,213 2. Groups of items Group 1 $ 867.5 Group 2 1,400 Group 3 1,968 Total inventory value $ 4,235.5 3. The inventory as a whole Total inventory value $ 4,263
Image of page 12
12/7/2014 Assignment 12 13/13 14.Your answer:Dollar­Value LIFOOn January 1, 2012, the Sato Company adopted the dollar­value LIFO method of inventory costing. The company's ending inventory records appear as follows:YearCurrent CostIndex2012$35,300100201350,760120201453,690130201565,800140Required:Compute the ending inventory for the years 2012, 2013, 2014, and 2015, using the dollar­value LIFO method. Do not round your intermediate calculations. If required,round your answers to the nearest dollar.
Image of page 13

You've reached the end of your free preview.

Want to read all 13 pages?

  • Spring '14
  • LENDECKY,BRIANR
  • Accounting, Goods Sold, Spreadsheet Spreadsheet Spreadsheet

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture