Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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 Inventory Items Office productivity Desktop publishing Accounting Units 5 4 5 Per Unit Cost Market $ 78 $ 76 105 102 92 98 Required: Compute the lower of cost or market for ending inventory assuming Rey applies the lower of cost or market rule to each product in Inventory. Must Rey adjust the reported inventory value? Part B Selected accounts and balances for the three months ended March 31, 2021, for Business Solutions follow, Deginning inventory, January Cost of goods sold Ending Inventory, March 11 $ 20,670 1,270 Compute inventory turnover and days' sales In Inventory for the three months onded March 31, 2021 Complete this question by entering your answers in the tabs below. Part A Comoute the lower of cost or market for ending inventory coming Rey applies the lower of cost or market rule to each product in inventory. Must Rey adjust the reported Inventory value! BUSINESS SOLUTIONS intory tas OM Units 8 Cost Market Total Cost Total Market LCM Applied Toms 92 102 08 03 05 Lotofi Complete this question by entering your answers in the tabs below. Part A Part 3 Compute the lower of cost or market for ending inventory assuming Rey applies the lower of cost or market rule to each produ inventory. Must Rey adjust the reported inventory value? Units LCM Applied To Items BUSINESS SOLUTIONS Per Unit Cost Market 7813 78 105 102 92 98 Total Cost Total Market Inventory Items Office productivity Desktop publishing Accounting Totals 5 4 5 5 0 $ 0 $ 0 Lower of cost or market for inventory applied separately to each product Rey must adjust the reported inventory value Part B > Compute Inventory tumover and days' sales In Inventory for the three months ended March 31, 2021. Complete this question by entering your answers in the tabs below. Part A Part B Compute inventory turnover and days' sales in inventory for the three months ended March 31, 2021. Inventory Turnover Choose Numerator: T Choose Denominator: Inventory Turnover Inventory Turnover Choose Numerator: Days Sales in Inventory Choose Denominator Ratio 0 days

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

Strategic Cost Analysis

Authors: Roger Hussey

1st Edition

160649239X, 9781606492390

More Books

Students also viewed these Accounting questions

Question

The quality of the proposed ideas

Answered: 1 week ago

Question

The number of new ideas that emerge

Answered: 1 week ago