Cash Accounts receivable Raw materiala inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Notes payable Common stock Retained earnings (prior year) Sales Coat of goods sold $ 71,000 40,000 25,000 0 12,000 4,000 $ 10,000 13,000 40,000 94,000 171,000 112,000 Factory overhead General and administrative expenses Totals 24,000 40,000 $ 328,000 $ 328,000 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materials requisition 111 Materials requisition 121 Labor time ticket 521 Labor time ticket 531 Labor time ticket 541 $ 4,800 direct materials to Job 402 $ 7,400 direct materials to Job 404 $2,100 indirect materiala $ 6,000 direct labor to Job 402 $ 14,000 direct labor to Job 404 $ 5,000 indirect labor

Cash Accounts receivable Raw materiala inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Notes payable Common stock Retained earnings (prior year) Sales Coat of goods sold $ 71,000 40,000 25,000 0 12,000 4,000 $ 10,000 13,000 40,000 94,000 171,000 112,000 Factory overhead General and administrative expenses Totals 24,000 40,000 $ 328,000 $ 328,000 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materials requisition 111 Materials requisition 121 Labor time ticket 521 Labor time ticket 531 Labor time ticket 541 $ 4,800 direct materials to Job 402 $ 7,400 direct materials to Job 404 $2,100 indirect materiala $ 6,000 direct labor to Job 402 $ 14,000 direct labor to Job 404 $ 5,000 indirect labor

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.2KTQ: Inventory Valuation Specific identification method Weighted average cost method FIFO method LIFO...

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The following information is taken from a company’s records. Costper Unit Market valueper Unit Inventory Item 1 (10 units) $39 $38 Inventory Item 2 (22 units) 19 19 Inventory Item 3 (12 units) 9 11 Applying the lower-of-cost-or-market approach, what is the correct value that should be reported on the balance sheet for the inventory? $fill in the blank 1
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The following information is taken from a company’s records. Costper Unit Market valueper Unit Inventory Item 1 (10 units) $40 $39 Inventory Item 2 (23 units) 20 20 Inventory Item 3 (12 units) 8 10 Applying the lower-of-cost-or-market approach, what is the correct value that should be reported on the balance sheet for the inventory?