Determine the amount of the ending inventory

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Reference no: EM13330905

Problem :1

Eloise Camera Shop uses the lower-of-cost-or-market basis for its inventory. The following data are available at December 31.

Item

 

Units

 

Unit Cost

 

Market Value/Unit

Cameras

 

 

 

 

 

 

   Minolta

 

4

 

$174

 

$159

   Canon

 

11

 

144

 

170

Light Meters

 

 

 

 

 

 

   Vivitar

 

14

 

130

 

113

   Kodak

 

19

 

123

 

140

Determine the amount of the ending inventory by applying the lower-of-cost-or-market basis.

The ending inventory

 

$

 

12.125

Problem 2:

Farman Appliance Mart began operations on May 1. It uses a perpetual inventory system. During May, the company had the following purchases and sales for its Model 25 Sureshot camera.

 

 

Purchases

 

 

Date

 

Units

 

Unit Cost

 

Sales Units

May 1

 

203

 

$141

 

 

May 4

 

 

 

 

 

116

May 8

 

232

 

$161

 

 

May 12

 

 

 

 

 

145

May 15

 

174

 

$176

 

 

May 20

 

 

 

 

 

87

May 25

 

 

 

 

 

116

(a1)Calculate the average cost per unit at May 1, 4, 8, 12, 15, 20 & 25.

 

 

Average cost for each unit

May 1

 

$

 

 

 

 

May 4

 

$

 

 

 

 

May 8

 

$

 

 

 

 

May 12

 

$

 

 

 

 

May 15

 

$

 

 

 

 

May 20

 

$

 

 

 

 

May 25

 

$

 

 

Reference no: EM13330905

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