Part A Santana Rey of Business Solutions is evaluating her inventory to determine whether it must be adjusted based on lower of cost or market rules. Business Solutions has three different types of software in its inventory and the following information is available for each. Per Unit Inventory Items Units Cost Market Office productivity 3 Desktop $ 76 103 $74 100 2 publishing Accounting 3 90 96 Required: 1(a). Compute the lower of cost or market for ending inventory assuming Rey applies the lower of cost or market rule to inventory as a whole. BUSINESS SOLUTIONS Per Unit Inventory Items Units Cost Market Total Cost Total Market --- AL BUSINESS SOLUTIONS Per Unit Inventory Items Units Cost Market Total Cost Total Market Office productivity 3 $ 76 $ 74 Desktop publishing 2 103 100 Accounting 3 90 90 96 Totals Lower of cost or market of inventory as a whole 1(b). Must Rey adjust the reported inventory value? Yes No 2(a).Compute the lower of cost or market rule to each product in inventory. 2(a).Compute the lower of cost or market rule to each product in inventory. BUSINESS SOLUTIONS Per Unit LCM Applied To Items Inventory Items Units Cost Market Total Cost Total Market Office productivity 3 $ 76 $ 74 Desktop publishing 2 103 100 Accounting 3 90 90 96 96 Totals 2(b).Must Rey adjust the reported inventory value? Part B Yes No Part B Selected accounts and balances for the three months ended March 31, 2016, for Business Solutions follow. January 1 beginning inventory $ 0 14,052 Cost of goods sold March 31 ending inventory 704 Required: 1. Compute inventory turnover and days' sales in inventory for the three months ended March 31, 2016. (Use 365 days a year. Do not round intermediate calculations.) Inventory Turnover Choose Numerator: Choose Denominator: = Inventory Turnover = Inventory Turnover = Days' Sales in Inventory Choose Numerator Choose Denominator = Ratio = Prev 1 of 1 Next