Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Bloomfield Corporation sells three items of inventory: rulers, mechanical pencils, and notebooks. The company begins operations on April 1, 2017 by purchasing 100 rulers

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The Bloomfield Corporation sells three items of inventory: rulers, mechanical pencils, and notebooks. The company begins operations on April 1, 2017 by purchasing 100 rulers at $6 each: 70 mechanical pencils at $8 each and 120 notebooks at $7 each. Using the information above, calculate the book value (i.e., balance sheet value) of the three categories of inventory that Bloomfield would report as of April 1, 2017 1. Rulers: 2. Pencils: 3. Notebooks: 4. Total: Now assume that Bloomfield incurs the following additional expenditures to acquire the inventory on April 1, 2017: The 100 rulers have a flat shipping fee of $15. The mechanical pencils are imported; each unit is subject to an import duty of $0.50. The notebooks ship with a flat fee of $12 plus $0.10 per unit. Re-calculate the book value of the three inventory categories as of April 1, 2017, taking into account the additional expenditures noted above. 1. Rulers: 2. Pencils: 3. Notebooks: 4 Total: Following up on Question 1: During the month of April, 2017, Bloomfield sells 24 rulers, 15 mechanical pencils, and 35 notebooks. Using the full cost values you calculated above (i.e., including the additional expenditures), compute the cost per unit of inventory, in dollar and cents, but without a $ sign, e.g., XX.XX. 1. Rulers: 2. Pencils: 3. Notebooks: Now calculate the cost of goods sold for the items sold during April. Enter your results in dollars and cents, without a $ sign, e.g., xx.xx. We'll do this in steps: 1. Rulers: 2. Pencils: 3. Notebooks: 4. Total COGS: Finally, calculate the carrying value of the inventory that remains after the April sales. Note: as an intermediate step, you'll need to compute the number of units remaining in inventory for each category. But provide your answers below in dollars and cents without a $ sign, e.g., xx.xx. 1. Rulers: 2. Pencils: 3. Notebooks: 4. Total

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Analysing Financial Statements For Non-Specialists

Authors: Jim OHare

2nd Edition

1138641529, 9781138641525

More Books

Students also viewed these Accounting questions