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Completing an Inventory Sheet InBeat CD Shop assigns a cost to its inventory using the
Chapter 25, Problem 25-5(choose chapter or problem)
Completing an Inventory Sheet
InBeat CD Shop assigns a cost to its inventory using the lower-of-cost-or-market rule. In your working papers, there is a partial inventory record. As an example, the first line of the inventory record has been completed.
Instructions Complete the inventory record. Do the following:
1. Select the lower-of-cost-or-market value. Enter that amount in the Price to be Used column.
2. Calculate the total cost of each item by multiplying the units in ending inventory by the Price to be Used column.
3. Add the amounts in the Total Cost column to determine the total cost of the ending inventory.
Analyze Identify how many items used market value rather than actual cost.
Questions & Answers
QUESTION:
Completing an Inventory Sheet
InBeat CD Shop assigns a cost to its inventory using the lower-of-cost-or-market rule. In your working papers, there is a partial inventory record. As an example, the first line of the inventory record has been completed.
Instructions Complete the inventory record. Do the following:
1. Select the lower-of-cost-or-market value. Enter that amount in the Price to be Used column.
2. Calculate the total cost of each item by multiplying the units in ending inventory by the Price to be Used column.
3. Add the amounts in the Total Cost column to determine the total cost of the ending inventory.
Analyze Identify how many items used market value rather than actual cost.
ANSWER:Step 1 of 2
InBeat CD Shop assigns a cost to its inventory using the lower-of-cost-or-market rule.
We need to complete the inventory record.
