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drive.google.com valua BE6-7 Cruz Video Center accumulates the following cost an

ID: 2405059 • Letter: D

Question

drive.google.com valua BE6-7 Cruz Video Center accumulates the following cost and market data at December 31. Dete categ Cost Data Market Data Inventory Categories Cameras Camcorders Blu-ray players (LO 4 12,000 $12,300 9,700 12,900 9,500 14,000 Compute the lower-of -cost-or-market valuation for the company's total inventory BE6-8 At December 31, 2017, the following information was available for E. Hetzel Comp Company: ending inventory $40,000, beginning inventory $56,000, cost of goods sold and da $270,000, and sales revenue $380,000. Calculate inventory turnover and days in inventory (LO 4) for E. Hetzel Company BE6-9 Rosario Department Store uses a perpetual inventory system. Data for product Apply c E2-D2 include the following purchases. perpeti (LO 5) May 7 Unit Price July 28 Number of Units 50 30 Date $10 13 On June 1, Rosario sold 26 units, and on August 27, 40 more units. Prepare the perpetual inventory schedule for the above transactions using (a) FIFO. (b) LIFO, and (c) movingaenge BE6-10 At May 31, Brunet Company has net sales of $340,000 and cost of goods available Apply the Fo 3

Explanation / Answer

Solution 6-7:

Solution 6-8:

Inventory turnover ratio = Cost of goods sold / Average inventory

Average inventory = ($40,000 + $56,000) / 2 = $48,000

Cost of goods sold = $270,000

Inventory turnover ratio = $270,000 / $48,000 = 5.625 times

Nos of days in inventory = Nos of days in a year / Inventory turnover ratio = 365 / 5.625 = 64.89 days

Solution 6-9:

Determination of Lower of cost or market value Item Cost Market Value Lower of cost or Market Value Cameras $12,000.00 $12,300.00 $12,000.00 Camcorders $9,500.00 $9,700.00 $9,500.00 Blu-ray players $14,000.00 $12,900.00 $12,900.00 Total $35,500.00 $34,900.00 $34,400.00