Kingbird Company sells two types of pumps. One is large and is for commercial use. The other is smaller and is used in residential swimming pools. The following inventory data is available for the month of March. Units Price per Unit Total 242 $ 484 $ 117,128 605 484 363 $ 545 $ 575 $ 605 $ 329,725 $ 278,300 $ 219,615 605 484 605 $ 653 $ 690 $ 395,065 $ 333,960 Residential Pumps Inventory at Feb. 28: Purchases: March 10 March 20 March 30 Sales: March 15 March 25 Inventory at March 31: Commercial Pumps Inventory at Feb. 28: Purchases: March 3 March 12 March 21 Sales: March 18 March 29 Inventory at March 31: 726 $ 968 $ 702,768 726 363 $ 1,089 $ 1,150 $ 1,210 $ 790,614 $ 417,450 $ 732,050 605 1,089 726 605 $ 1,307 $1,379 $ 1,423,323 $ 1,001,154 In addition to the above information, due to a downturn in the economy that has hit Kingbird's commercial customers especially hard, Kingbird expects commercial pump prices from March 31 onward to be considerably different (and lower) than at the beginning of and during March. Kingbird has developed the following additional information. Commercial Pumps $1,089 Residential Pumps $702 Net realizable value (per unit) The normal profit margin is 16.67% of cost. Kingbird uses the FIFO accounting method. Determine the dollar amount that Kingbird should report on its March 31 balance sheet for inventory. Assume Kingbird applies lower-of-cost-or-net realizable value at the individual product level. Total amount of inventory $ Determine the dollar amount that Kingbird should report on its March 31 balance sheet for inventory. Assume Kingbird applies lower-of-cost-or-market at the major category level. Kingbird places both commercial and residential pumps into the same (and only) category. Total amount of inventory $ Kingbird Company sells two types of pumps. One is large and is for commercial use. The other is smaller and is used in residential swimming pools. The following inventory data is available for the month of March. Units Price per Unit Total 242 $ 484 $ 117,128 605 484 363 $ 545 $ 575 $ 605 $ 329,725 $ 278,300 $ 219,615 605 484 605 $ 653 $ 690 $ 395,065 $ 333,960 Residential Pumps Inventory at Feb. 28: Purchases: March 10 March 20 March 30 Sales: March 15 March 25 Inventory at March 31: Commercial Pumps Inventory at Feb. 28: Purchases: March 3 March 12 March 21 Sales: March 18 March 29 Inventory at March 31: 726 $ 968 $ 702,768 726 363 $ 1,089 $ 1,150 $ 1,210 $ 790,614 $ 417,450 $ 732,050 605 1,089 726 605 $ 1,307 $1,379 $ 1,423,323 $ 1,001,154 In addition to the above information, due to a downturn in the economy that has hit Kingbird's commercial customers especially hard, Kingbird expects commercial pump prices from March 31 onward to be considerably different (and lower) than at the beginning of and during March. Kingbird has developed the following additional information. Commercial Pumps $1,089 Residential Pumps $702 Net realizable value (per unit) The normal profit margin is 16.67% of cost. Kingbird uses the FIFO accounting method. Determine the dollar amount that Kingbird should report on its March 31 balance sheet for inventory. Assume Kingbird applies lower-of-cost-or-net realizable value at the individual product level. Total amount of inventory $ Determine the dollar amount that Kingbird should report on its March 31 balance sheet for inventory. Assume Kingbird applies lower-of-cost-or-market at the major category level. Kingbird places both commercial and residential pumps into the same (and only) category. Total amount of inventory $
