147 on the basis of the following data determine the value of the inventory at the l 4298795
147. On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item. Show your work.
|
Item |
Inventory Quantity |
Unit Cost Price |
Unit Market Price |
|
Gear X |
100 |
$33 |
$29 |
|
Gear Y |
75 |
27 |
28 |
|
|
|
|
|
148. The following data were taken from the annual reports of Jong Inc., a manufacturer of fireworks, and Hobson Inc., a manufacturer of computers.
|
|
Jong, Inc. |
Hobson, Inc. |
|
Cost of Goods Sold |
$830,000 |
$11,540,000 |
|
Inventory, end of year |
$185,000 |
315,000 |
|
Inventory, beginning of year |
$235,000 |
155,000 |
|
|
|
|
(a) Determine the (1) inventory turnover and (2) number of day’s sales in inventory for Jong and Hobson. Round your answer to two decimal places.
(b) How would you expect these measures to compare between the companies? Why?
149. Based on the following data, calculate the estimated cost of the merchandise inventory on March 31 using the retail method.
|
|
|
Cost |
Retail |
|
March 1 |
Merchandise Inventory |
$225,000 |
$357,600 |
|
March 1-31 |
Purchases (net) |
465,000 |
612,750 |
|
March 1-31 |
Sales (net) |
|
835,000 |
|
|
|
|
|
150. A business using the retail method of inventory costing determines that merchandise inventory at retail is $1,700,000. If the ratio of cost to retail price is 55%, what is the amount of inventory to be reported on the financial statements?