153.On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lowerof cost or market to each inventory item. Show your work.
Item
|
Inventory Quantity
|
Unit Cost Price
|
Unit Market Price
|
Gear X
|
175
|
$33
|
$29
|
Gear Y
|
225
|
27
|
28
|
154.The following data were taken from the annual reports of Big Bang Inc., a manufacturer of fireworks, and OrangeInc., a manufacturer of computers.
|
Big Bang, Inc.
|
Orange, Inc.
|
Cost of merchandise sold
|
$830,000
|
$11,540,000
|
Inventory, end of year
|
190,000
|
320,000
|
Inventory, beginning of year
|
240,000
|
290,000
|
(a)Determine the (1) inventory turnover and (2) number of days' sales in inventory for Big Bang and Orange.Round your answers to two decimal places.
(b)How would you expect these measures to compare between the companies? Why?
155.Based on the following data, calculate the estimated cost of the merchandise inventory on March 31 using the retailmethod.
|
|
Cost
|
Retail
|
March 1
|
Merchandise inventory
|
$225,000
|
$357,600
|
March 1–31
|
Purchases (net)
|
454,245
|
612,750
|
March 1–31
|
Sales
|
|
835,000
|
|
|
|
|
156.A business using the retail method of inventory costing determines that merchandise inventory at retail is$2,300,000. If the ratio of cost to retail price is 55%, what is the amount of inventory to be reported on the financialstatements?
157.Based upon the following data, estimate the cost of ending merchandise inventory using the gross profit method.
Sales
|
$250,000
|
Estimated gross profit rate
|
25%
|
|
|
Beginning merchandise inventory
|
$ 9,000
|
Purchases (net)
|
211,000
|
Merchandise available for sale
|
$220,000
|