Exam 6: Inventory Costing and Valuation

Annie's Attic reported the following data: Instructions: (1) Calculate the days' sales in inventory for each year, rounded to the nearest full day. (2) Comment on the trend in inventory management.

Player Company made the following merchandise purchases during the current year: There was no beginning inventory, but ending inventory consisted of 105 units. If Player uses the first-in, first-out method and the periodic inventory system, what would be the cost of the ending inventory?

Toys "R" had cost of goods sold of $6,900 million. Its ending inventory was $2,000 million. Therefore, its days' sales in inventory was 90 days.

If the cost to retail ratio is 60% and ending inventory at retail is $45,000, then estimated ending inventory at cost is $27,000.

Coronado Company sells two types of inventory, MP3 players and Blu Ray players. The MP3 players originally cost $2,250 and have a net realizable value $1,075 while the Blu Ray players had an original cost of $500 and have a net realizable value of $700. Calculate the year end adjustment to inventory when applying the lower of cost and net realizable value on an item by item basis.

The inventory cost flow assumption that assigns the highest cost to ending inventory in a period of rising prices is moving weighted average.

Costs included in the value of inventory are

Trekking Company had the following purchases during the year: January 1: 10 units at \ 120 February 1: 20 units at \ 130 May I: 15 units at \ 140 Neptember l: 12 units at \ 150 Novermer l: 10 units at \ 160 On December 31, there were 26 units in ending inventory. These 26 units consisted of 2 from January, 4 from February, 6 from May, 4 from September, and 10 from November. Using the specific identification method, what is the cost of the ending inventory?

Understatement of beginning inventory causes