Question #1
Sadowski Video Center accumulates the following cost and market data at December 31.
|
Inventory Categories
|
Cost Data
|
Market Data
|
|
Cameras
|
$11,349
|
$12,459
|
|
Camcorders
|
8,723
|
9,513
|
|
DVDs
|
11,348
|
10,318
|
Compute the lower-of-cost-or-market valuation for Sadowski inventory.
Question #2
In its first month of operation, Kuhlman Company purchased 140 units of inventory for $9, then 240 units for $10, and finally 180 units for $11. At the end of the month, 210 units remained.
Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO.