ACC 304 All Assignments ACC 304 All Assignments | Page 184

12) Muckenthaler Company sells product 2005WSC for $40 per unit.
The cost of one unit of 2005WSC is $36, and the replacement cost is
$35. The estimated cost to dispose of a unit is $8, and the normal profit
is 40%. At what amount per unit should product 2005WSC be reported,
applying lower-of-cost-or-market?
13) Barker Pet supply uses the conventional retail method to
determine its ending inventory at cost. Assume the beginning inventory
at cost (retail) were $531,200 ($653,800), purchases during the current
year at cost (retail) were $2,137,200 ($2,772,200), freight-in on these
purchases totaled $127,800, sales during the current year totaled
$2,704,000, and net markups (markdowns) were $4,000 ($192,600).
What is the ending inventory value at cost?
14) Barker Pet supply uses the conventional retail method to
determine its ending inventory at cost. Assume the beginning inventory
at cost (retail) were $531,200 ($653,800), purchases during the current
year at cost (retail) were $2,137,200 ($2,772,200), freight-in on these
purchases totaled $127,800, sales during the current year totaled
$2,704,000, and net markups (markdowns) were $4,000 ($192,600).
What is the ending inventory value at cost?
15) Under the lower-of-cost-or-market method, the replacement cost
of an inventory item would be used as the designated market value