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The following April: April data is available for one of the products sold by Chan Company for the month of 1 5 18 20 24

The following April:

April

data is available for one of the products sold by Chan Company for the month of

1 5 18 20 24

On hand, 10 units at $8 each Purchased 30 units at $7.80 each Purchased 40 units at $8.25 each Sold 75 units for $13 each Purchased 20 units for $8.25 each

$ 80 234 330

165

Chan Companys ending inventory for April was 25 units.

Required:

Complete the following table by determining the amounts of the April 30 inventory and cost of goods sold for April, under each of the inventory costing methods listed below. Assume that Chan Company uses a perpetual inventory system.

FIFO Weighted Average

Cost of Goods Sold (COGS) Ending Inventory

Part B (6 Marks)

Valley Inc. has compiled the following information concerning items in its inventory at December 31:

Item Quantity Cost per Unit Net Realizable Value (NRV)per unit

A 120 $45 $50 B 70 160 120 C 60 100 110

Required:

  1. The carrying amount of the total inventory of Valley Inc. using the lower of cost or net realizable value (LCNRV) rule applied on an item by item basis is: (4 marks)

     _____________________________________ 
  2. The loss due to inventory write down to LCNRV is: (2 marks) _____________________________________

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