114. 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
|
Product C
|
420
|
$6
|
$5
|
Product D
|
370
|
12
|
14
|
|
|
|
|
115. 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
|
|
|
|
|
116. Three identical units of Item Magnesium XP are purchased during May, as shown below.
|
Item Magnesium XP
|
Units
|
Cost
|
May 3
|
Purchase
|
1
|
$130
|
May 10
|
Purchase
|
1
|
136
|
May 19
|
Purchase
|
1
|
142
|
Total
|
|
3
|
$408
|
Average cost per unit
|
$136 (= $408 / 3)
|
|
|
|
|
|
|
Assume that one unit is sold on May 23 for $153. Determine the gross profit for May and ending inventory on May 31 using (a) FIFO, (b) LIFO, and (c) average cost methods.
117. Three identical units of Item Steele Plate are purchased during March, as shown below.
|
Item Steele Plate
|
Units
|
Cost
|
Mar. 3
|
Purchase
|
1
|
$800
|
Mar. 10
|
Purchase
|
1
|
840
|
Mar. 19
|
Purchase
|
1
|
880
|
Total
|
|
3
|
$2,520
|
Average cost per unit
|
$840 (= $2,520 / 3)
|
|
|
|
|
|
|
Assume that one unit is sold on March 23 for $1,025. Determine the gross profit for March and ending inventory on March 31 using (a) FIFO, (b) LIFO, and (c) average cost methods.
118. Safeguarding inventory from damage or theft is a primary objective for the control of inventory. If you were running a clothing store, name three specific controls you would implement to guard inventory from theft.