A company normally sells its product for $17 per unit. However, the selling pric

Question

A company normally sells its product for $17 per unit. However, the selling price has fallen to $10 per unit. This company's current inventory consists of 700 units purchased at $14 per unit. Replacement cost has now fallen to $8 per unit. Calculate the value of this company's inventory at the lower of cost or market.

$9800

$5600

$11900

$6350

$7000

A company normally sells its product for $37 per unit. However, the selling price has fallen to $27 per unit. This company's current inventory consists of 170 units purchased at $29 per unit. Replacement cost has now fallen to $23 per unit. Calculate the value of this company's inventory at the lower of cost or market.

$3910

$5440

$6290

$4930

$4590

A company uses the periodic inventory system and had the following activity during the current monthly period.

      
Using the weighted-average inventory method, the company's ending inventory would be reported at:

$5708

$5382

$5658

$5934

$10537

A company reported the following information regarding its inventory.
Beginning inventory: cost is $55,000; retail is $125,000
Net purchases: cost is $65,000; retail is $135,000
Sales at retail: $165,000

The year-end inventory showed $95,000 worth of merchandise available at retail prices. What is the cost of the ending inventory? Round your cost-to-retail ratio to a whole percentage number.

$44250

$44075

$44525

$45025

$43700

  November 1:   Beginning inventory 138 units @ $39   November 5:   Purchased 119 units @ $41   November 8:   Purchased 69 units @ $42   November 16:   Sold 257 units @ $64   November 19:   Purchased 69 units @ $44

Explanation / Answer

1. 8*700 = $5600

2. 23*170 = $3910

3. total cost of goods available = 138*39+119*41+69*42+69*44 = $16195

total number of goods purchased = 138+119+69+69 = 395

average cost = 16195/395 = $41

no on unit available = 395-257 = 138

total inventory cost = 138*41 = $5658

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