Problem :1
Eloise Camera Shop uses the lower-of-cost-or-market basis for its inventory. The following data are available at December 31.
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Item
|
|
Units
|
|
Unit Cost
|
|
Market Value/Unit
|
|
Cameras
|
|
|
|
|
|
|
|
Minolta
|
|
4
|
|
$174
|
|
$159
|
|
Canon
|
|
11
|
|
144
|
|
170
|
|
Light Meters
|
|
|
|
|
|
|
|
Vivitar
|
|
14
|
|
130
|
|
113
|
|
Kodak
|
|
19
|
|
123
|
|
140
|
Determine the amount of the ending inventory by applying the lower-of-cost-or-market basis.
|
The ending inventory
|
|
$
12.125
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Problem 2:
Farman Appliance Mart began operations on May 1. It uses a perpetual inventory system. During May, the company had the following purchases and sales for its Model 25 Sureshot camera.
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|
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Purchases
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|
|
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Date
|
|
Units
|
|
Unit Cost
|
|
Sales Units
|
|
May 1
|
|
203
|
|
$141
|
|
|
|
May 4
|
|
|
|
|
|
116
|
|
May 8
|
|
232
|
|
$161
|
|
|
|
May 12
|
|
|
|
|
|
145
|
|
May 15
|
|
174
|
|
$176
|
|
|
|
May 20
|
|
|
|
|
|
87
|
|
May 25
|
|
|
|
|
|
116
|
(a1)Calculate the average cost per unit at May 1, 4, 8, 12, 15, 20 & 25.
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|
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Average cost for each unit
|
|
May 1
|
|
$
|
|
|
|
|
|
May 4
|
|
$
|
|
|
|
|
|
May 8
|
|
$
|
|
|
|
|
|
May 12
|
|
$
|
|
|
|
|
|
May 15
|
|
$
|
|
|
|
|
|
May 20
|
|
$
|
|
|
|
|
|
May 25
|
|
$
|