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Questions 10-14 are with reference to the following information: Amco, Inc. manufactures stereo turntables in the United States. It reports its financial information on a
Questions 10-14 are with reference to the following information: Amco, Inc. manufactures stereo turntables in the United States. It reports its financial information on a calendar year basis. For its FY 2020 it shows the following per unit information for its turntables: Inventory January 1 -0- Components and Materials Purchased FY 2020 $125 Transportation of Components to Amco's Factory 35 Insurance on Components and Materials Pending Delivery 10 Labor to Assemble Components into Finished Turntables 90 Office Overhead Related to Manufacture 30 Marketing Costs 80 Storage of Materials and Work in Process 10 Storage of Finished Goods 10 Security & Insurance for Finished Goods 10 Amco's Target Sales Price 500 Inventory Costing Method Used Specific Identification There are no sales during FY 2020. There is no work in process as of 12/31/2020. Assuming no other information is available or relevant, what is the DOLLAR VALUE of Amco's 10. Per unit inventory as of 12/31/2020? 11. Assuming the above and that Amco determines as of December 31 there is insufficient demand for its turntables and sets a new target sales price of $310 per unit, what is the DOLLAR VALUE of Amco's per unit inventory as of 12/31/2020? 12. Assuming the above and that Amco determines as of December 31 there is insufficient demand for its turntables and sets a new target sales price of $280 per unit, what is the DOLLAR VALUE of Amco's per unit inventory as of 12/31/2020? 13. Assuming the above, that Amco has determined as of December 31, 2020 there is insufficient demand for its turntables and sets a new target sales price of $250 per unit, and that during FY 2021, Amco has determined that demand for turntables has increased and sets a new target per unit sales price of $400, what will the likely DOLLAR VALUE of Amco's per unit inventory be as of 12/31/2021? 14. What would the answer to Question 13 be (also assuming US dollars and Euros are trading at parity) if Amco were headquartered and operating instead in Hamburg, Germany
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