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Part A Santana Rey of Business Solutions is evaluating her...

Part A Santana Rey of Business Solutions is evaluating her inventory to determine whether it must be adjusted based on lower of cost or market rules. Business Solutions has three different types of software in its inventory and the following information is available for each. Per Unit Inventory Items Units Cost Market Office productivity 5 $ 85 $ 83 Desktop publishing 4 113 109 Accounting 5 99 105 Required: 1(a). Compute the lower of cost or market for ending inventory assuming Rey applies the lower of cost or market rule to inventory as a whole. (Omit the "$" sign in your response.) Total Total Inventory Items cost market Office productivity $ $ Desktop publishing Accounting Totals $ $ Lower of cost or market of inventory as a whole $ 1(b). Must Rey adjust the reported inventory value? No Yes 2(a). Compute the lower of cost or market rule to each product in inventory. (Omit the "$" sign in your response.) LCM applied Inventory Items to items Office productivity $ Desktop publishing Accounting Totals $ 2(b). Must Rey adjust the reported inventory value? No Yes Part B Selected accounts and balances for the three months ended March 31, 2012, for Business Solutions follow. January 1 beginning inventory $ 0 Cost of goods sold 33,614 March 31 ending inventory 1,372 Required: 1. Compute inventory turnover and days’ sales in inventory for the three months ended March 31, 2012. (Use 365 days a year. Do not round intermediate calculations. Round your days' sales answer to 1 decimal place and turnover answer to the nearest whole number.) Inventory turnover times Days’ sales in inventory days

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