Question 8 0.83 / 0.83 pts USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (4) QUESTIONS: Sparky, Inc. began the month of May with 2,600 units of Product X on hand at a cost of $10 per unit. During the month of May, the following transactions affecting inventory occurred: Transaction Purchase Date May 3 May 6 May 15 May 20 May 21 May 30 Sale Purchase Sale Purchase Sale Units @ $Cost/Selling Price per unit 2,000 units @ $10.50 1,200 units @ $15 5,000 units @ $11.00 5,500 units @ $15 4,000 units @ $11.50 2,300 units @ $15 a. If Sparky uses Perpetual LIFO, determine Ending Inventory at LIFO Cost as of May 31st: $[Blank_8] 48700 Question 9 0.83 / 0.83 pts Using the information presented in #8 above, answer the following: Sparky currently uses U.S. GAAP and applies Lower-of-Cost-or-Market to report their ending inventory. Due to some rapidly changing market conditions, the replacement cost of Product X at May 31st is $9.90 per unit. The estimated selling price of Product X at May 31st is $15.00 per unit. Based on past experience, the company estimates disposal cost to be $4 per unit. For the last several months, Sparky's normal profit has held constant at 30% of selling price. (b) After applying LCM, determine the ending inventory value Sparky should report on their balance sheet dated May 31st: $[Blank_9] 45540 Question 10 0.83/0.83 pts Using the information presented in #8 and #9 above, determine the following: (c) After applying LCM, determine the Loss on Inventory Decline (if any): $[Blank_10] *If there is a loss, simply report the dollar amount. You do not need to use a (-) sign or () parenthesis. For example, if Sparky should report a $1,000 loss, record your answer as 1000. If Sparky did not have to write down their inventory, record your answer as 0 (i.e. use the numeric character for zero) 3160 Incorrect Question 11 0/0.83 pts Using the information presented in #8 and #9 above, determine the following: Sparky is considering adopting IFRS reporting standards, and if adopted, would determine the cost of their inventory using periodic FIFO. Using the same cost & market data as presented above, what should Sparky report for the Loss on Inventory Decline as of May 31st under IFRS after applying LCNRV? is a loss, simply re po Sparky should report a $1,000 loss, record. Mswer as a zero (i.e. *If there is a loss, simply report the dollar amount. You do not need to use a (-) sign or() parenthesis. For example, if Sparky should report a $1,000 loss, record your answer as 1000. If Sparky did not have to write down their inventory, record your answer as a zero (i.e. 0) $[Blank_11]
