Question

Question #5 continued (4 questio uede questions @ 5 point each total of 20 points. 5c). A company just st any just starting business made the following four inventory purchases in June Total Costs June 1 150 units June 10 200 units June 15 200 units 630 June 28 150 units 510 $2.128 $ 390 598 physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the average-cost method, the amount allocated to the ending inventory on June 30 is: 5d). Barley Company developed the following information about its inventories in applying the lower-of-cost-or-market (LCM) basis in valuing inventories: Cost Market $115,000 $120,000 80,000 73,000 158,000 162,000 Product If Barley applies the LCM basis, the value of the inventory reported on the balance sheet would be: a. $346,000 b. $353,000. C. $355,000 d. $362,000.

Answer 1

② Average cost (unit. Total cost Total units $2128 700 units = 3.ou lunits Number of units in Endling inventory = 200 units cost of Ending inventory = doounits x 3.04 = $ 608 ② lower of cost cost - A of Inventory based on (oo market value. cost market value $115000 $120000 80000 73000 158000 162000 6cm $115000 73000 158000 $346000 value of Ending inventory = $346000