(a) Prepare the inventory section of Groupers balance sheet as of November 30, 2018. (Round answers to 0 decimal places, e.g. 2,556.)
Problem 9-11 Your answer is partially correct. Try again Grouper Specialty Company, a division of Lost World Inc., manufactures three models of gear shift components for bicycles that are sold to bicycle manufacturers, retailers, and catalog outlets. Since beginning operations in 1993, Grouper has used normal absorption costing and has assumed a first-in, first-out cost flow in its perpetual inventory system. The balances of the inventory accounts at the end of Grouper's fiscal year, November 30, 2017, are shown below. The inventories are stated at cost before any year-end adjustments Finished goods Work in process Raw materials $631,100 103,200 243,500 74,200 Factory supplies The following information relates to Grouper's inventory and operations 1. The finished goods inventory consists of the items analyzed below Cost NRV Down tube shifter Standard model Click adjustment model Deluxe model $72,600 94,000 98,800 265,400 $72,200 80,800 100,800 253,800 Total down tube shifters Bar end shifter Standard model Click adjustment model 76,900 96,900 85,300 95,300 The following information relates to Grouper's inventory and operations 1. The finished goods inventory consists of the items analyzed below Cost NRV Down tube shifter Standard model Click adjustment model Deluxe model $72,600 94,000 98,800 265,400 $72,200 80,800 100,800 253,800 Total down tube shifters Bar end shifter Standard model Click adjustment model 76,900 96,900 173,800 85,300 95,300 180,600 Total bar end shifters Head tube shifter Standard model Click adjustment model 83,700 108,200 191,900 $631,100 83,300 110,700 194,000 $628,400 Total head tube shifters Total finished goods 2. One-half of the head tube shifter finished goods inventory is held by catalog outlets on consignment 3. Three-quarters of the bar end shifter finished goods inventory has been pledged as collateral for a bank loan 4. One-half of the raw materials balance represents derailleurs acquired at a contracted price 20% above the current market price. The NRV of the rest of the raw materials is $118,500 5. The total NRV of the work in process inventory is $99,200 2. One-half of the head tube shifter finished goods inventory is held by catalog outlets on consignment. 3. Three-quarters of the bar end shifter finished goods inventory has been pledged as collateral for a bank loan 4, One-half of the raw materials balance represents derailleurs acquired at a contracted price 20% above the current market price. The NRV of the rest of the raw materials is $118,500 5. The total NRV of the work in process inventory is $99,200 6. Included in the cost of factory supplies are obsolete items with an historical cost of $4,300. The market value of the remaining factory supplies is $70,900. 7. Grouper applies the LCNRV method to each of the three types of shifters in finished goods inventory. For each of the other three inventory accounts, Grouper applies the LCNRV method to the total of each inventory account 8. Consider all amounts presented above to be material in relation to Grouper's financial statements taken as a whole (a) Prepare the inventory section of Grouper's balance sheet as of November 30, 2018. (Round answers to 0 decimal places, e.g. 2,556.) Grouper Specialty Company Balance Sheet November 30, 2018 Current Assets Inventory Finished Goods 619500 work-in-Process 99,200 Raw Materials4 219300 Factory Supplies 69900 Total Inventories Click if you would like to Show Work for this question: Open Show Work
