C) Credited by $1,600.
cost of inventory $14 each
Replacement cost $10 per unit
Loss per unit $4(14-10)
No. of units = 400
Hence, reduction in value = 400*4 = $1,600.
17) Handbags, Inc. had 400 units of inventory on hand at the end of the vear....
Robyn's Retail had 500 units of inventory on hand at the end of the year. These were recorded at a cost of $19 each using the last-in, first-out (LIFO) method. The current replacement cost is $17 per unit. The selling price charged by Robyn's Retail for each finished product is $27. In order to record the adjusting entry needed under the lower-of-cost-or-market rule, the Merchandise Inventory will be ________. Group of answer choices A. debited by $8,500 B. credited by...
Kim's Retail had 500 units of inventory on hand at the end of the year. These were recorded at a cost of $19 each using the last - in, first-out (LIFO) method. The current replacement cost is $16 per unit. The selling price charged by Kim's Retail for each finished product is $27. In order to record the adjusting entry needed under the lower-of-cost-or-market rule, the Merchandise Inventory will be
QUESTION 7 On March 18, James Smith purchased $5,000 of furniture from Home Furnishings on account. The cost of the goods was $3.000. On March 20. Home Furnishings granted the customer a $1,000 sales allowance for goods damaged in transit. For Home Furnishings, which of the following represents the correct way to record this transaction? Sales Returns and Allowances 1.000 Cash 1.000 Sales Revenge 1.000 1.000 Refunds Payable 1.000 Cash 1.000 800 Merchandise Inventory Estimated Returns Inventory 600 1,000 Refunds...
Sanfillipo, Inc., had 800 units of inventory on hand at March 1, 2013, costing $20 each. Purchases and sales of inventory during the month of March were as follows 2. Date March 8 15 Sales 600 units Purchases 400 units a $22 each 400 units a $24 each 27 400 units Sanfillipo uses the periodic inventory system. According to a physical count, 600 units were on hand at the end of March. Calculate the cost of inventory at the end...
As of 12-31-15, Acme Company has three different inventory items on hand. Data on the three items follows tem Quantity Unit cost Replacement Normal rofit Expected Estima ted on hand (Acme uses LIFO 75 24 51 selling pricedisposal costs $1,500 $400 $1,000 cost $405 $310 $775 $625 $300 $800 $750 S230 $300 $100 $25 $250 Using the lower-of-cost-or-market approach applied on an individual-item basis, determine if Acme needs to make an entry to write her inventory down. If so, prepare...
Name 1. Actually counting the goods on hand at the end of the accounting period and determining the cost of these goods by reviewing the accounting records is called a. b. c. the cost of goods sold. the physical inventory. freight-in. accumulated depreciation. 2. Unearned revenue is reported as a(n) current liability on the balance sheet. b. contra-asset account on the chart of accounts owner's equity account on the work sheet. asset on the balance sheet. d. 3. The income...
Sanfillipo, Inc., had 800 units of inventory on hand at March 1 of the current year, costing $20 each. Purchases and sales of inventory during the month of March were as follows: Date Purchases Sales March 8 600 units 15 400 units @ $22 each 22 400 units @ $24 each 27 400 units Sanfillipo uses the perpetual inventory system. According to a physical count, 600 units were on hand at the end of March. The cost of goods sold...
Valuing Inventory at Lower-of-Cost-or-Market Gard Inc. has compiled the following information related to its five products. Costs of disposal are estimated to be 10% of selling price, and gross profit is estimated to be 25% of the selling price. Determine the value of inventory applying the lower-of-cost-or- market rule to each individual inventory item. Note: Round each amount to the nearest dollar. #1 #2 #3 #4 #5 Estimated selling price $330 $380 $410 $500 $650 Original cost (LIFO) 225 240...
Sanfillipo, Inc., had 800 units of inventory on hand at March 1 of the current year, costing $20 each. Purchases and sales of inventory during the month of March were as follows: Purchases Date March 8 Sales 600 units 400 units @ $22 each 400 units @ $24 each 27 400 units Sanfillipo uses the periodic inventory system. According to a physical count, 600 units were on hand at the end of March The cost of goods sold for March...
Best Deals, Inc. has 10 units in ending merchandise inventory on December 31. The units were purchased in November for $160 each. The price lists from suppliers indicate the current replacement cost of the item to be $162 each. What would be the amount reported as Merchandise Inventory on the balance sheet? Group of answer choices A. $1,600 B. $3,220 C. $322 D. $1,620