1. Skysong, Inc. sells coffee beans, which are sensitive to price fluctuations. The following inventory information is available for this product at December 31, 2022
Calculate Skysong's inventory by applying the lower-of-cost-or-market basis.
Skysong's inventory $ _______
2. Crane Company sells coffee beans, which are sensitive to price fluctuations. The following inventory information is available for this product at December 31, 2022.
Calculate Crane's inventory by applying the lower-of-cost-or-market basis.
Crane's inventory $_______
1) Lower of cost or market value
Unit Cost | NRV | Total Value | |
Coffea arabica | 5.50 | 5.45 | 5.45*13700 = 74665 |
Coffea robusta | 3.30 | 3.40 | 3.30*5600 = 18480 |
Total | 93145 | ||
Inventory value = $93145
2) Lower of cost or market value
Unit Cost | NRV | Total Value | |
Coffea arabica | 6.10 | 6.05 | 6.05*11700 = 70785 |
Coffea robusta | 3.20 | 3.30 | 3.20*4500 = 14400 |
Total | 85185 | ||
Inventory value = $85185
Skysong, Inc. sells coffee beans, which are sensitive to price fluctuations
P6-9A Tascon Corporation sells coffee beans, which are sensitive to price fluctuations. The following inventory information is available for this product at December 31, 2018: Coffee Bean Units Unit Cost Net Realizable Value Coffea arabica 13,000 bags $5.60 $5.55 Coffea robusta 5,000 bags 3.40 3.50 (c) Explain whether Tascon should consider each type of coffee bean separately when determining the lower of cost and net realizable value. Identify an argument in support of both types of coffee beans being considered...
QUESTION 5: P6-9ATascon Corporation sells coffee beans, which are sensitive to price fluctuations. The following inventory information is available for this product at December 31, 2018: Coffee Bean Units Unit Cost Net Realizable Value Coffea arabica 13,000 bags $5.60 $5.55 Coffea robusta 5,000 bags 3.40 3.50 (a) Calculate Tascon’s inventory at the lower of cost and net realizable value. (b) Prepare any journal entry required to record the LCNRV, assuming that Tascon uses a perpetual inventory system. (c) Explain whether...
P6-9A Tascon Corporation sells coffee beans, which are sensitive to price fluctuations. The following inventory information is available for this product at December 31, 2018: Coffee Bean Units Unit Cost Net Realizable Value Coffea arabica 13,000 bags $5.60 $5.55 Coffea robusta 5,000 bags 3.40 3.50 (a) Calculate Tascon’s inventory at the lower of cost and net realizable value. (b) Prepare any journal entry required to record the LCNRV, assuming that Tascon uses a perpetual inventory system. (c) Explain whether Tascon...
Exercise 6-1 Carla Vista Co. sells coffee beans, which are sensitive to price fluctuations. The following inventory information is available for this product at December 31, 2017: Unit Cost Coffee Bean Coffea arabica 12,000 bags Coffea robusta 5,000 bags Units Market Market $5.90 $5.87 3.40 3.50 Calculate Tascon's inventory by applying the lower-of-cost-or-market basis Tascon's inventory Click if you would like to Show Work for this question: Open Show Work Problem 6-2A Grouper Corp. markets CDs of numerous performing artists....
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