I need explanation along with answers for both problems. I keep coming up with the wrong answer. Needed today 3/21/15. Only respond if you can do by the date that I have given and can produce what I have instructed. I will not rate until I know it is correct.
1. Sadowski Video Center accumulates the following cost and market data at December 31.
|
Inventory Categories |
Cost Data |
Market Data |
||
|
Cameras |
$10,318 |
$11,408 |
||
|
Camcorders |
8,735 |
9,355 |
||
|
DVDs |
12,510 |
11,430 |
Compute the lower-of-cost-or-market valuation for Sadowski inventory.
2. In its first month of operation, Kuhlman Company purchased 310 units of inventory for $8, then 410 units for $9, and finally 350 units for $10. At the end of the month, 380 units remained.
Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO.
