In March 2012, X Corp. purchased an item of inventory for $400. By June, that it

Question

In March 2012, X Corp. purchased an item of inventory for $400. By June, that item could be purchased for $360 and re-sold for $440. X’s normal profit for the item is $50. At what amount should X report the item in its June 30 balance sheet? X uses the LIFO inventory cost flow assumption. (omit , and $ in the answer)

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Question 71 pts

X, Inc., uses the LIFO cost flow assumption. X had 100 items in its Jan. 1 beginning inventory balance, totaling $500 (that is, $5 each). X purchased another 200 items on Jan. 9 for $7 each. On Jan. 12 X sold 230 items for $10 each. By how much did this LIFO liquidation increase X's usual profit on a sale of 230 items? (omit , and $ in the answer)

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Question 81 pts

X, Inc., is a manufacturer that can produce 10,000 units per quarter at capacity. However, normal production ranges from 9,000 to 10,000 units. During the quarter, X has fixed overhead costs of $80,000 and produces only 8,000 units due to unexpected maintenance issues that forced the facility to close for several days. How much of the $80,000 in fixed overhead costs should X include in its Inventory balances for the quarter? (use the approach we discussed in class and omit , and $ in the answer)

Explanation / Answer

Solution.

A. In this case X Corp. should be report his equipment in balance sheet on the amount of book value that is $400.

Because $360 is market value of asset in the month of june. here inventory valuation method is irelevent.

B .Calculation of profit.

Profit = $2,300 - $1,550 = $750

Cost of goods sold Date Particulars Unit Unit price Amount Jan. 12 Sold             200                 7          1,400 Jan. 12 Sold               30                 5             150 Total          1,550

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