ACC / 422 WileyPLUS Week 2 Assignment 2015
KnowledgeCatsQuestion 1
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Michael Bolton Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis.
Item No. | Quantity | Cost per Unit | Cost to Replace | Estimated Selling Price | Cost of Completion and Disposal | Normal Profit | ||||||||||||
1320 | 1,200 | $3.20 | $3.00 | $4.50 | $0.35 | $1.25 | ||||||||||||
1333 | 900 | 2.70 | 2.30 | 3.50 | 0.50 | 0.50 | ||||||||||||
1426 | 800 | 4.50 | 3.70 | 5.00 | 0.40 | 1.00 | ||||||||||||
1437 | 1,000 | 3.60 | 3.10 | 3.20 | 0.25 | 0.90 | ||||||||||||
1510 | 700 | 2.25 | 2.00 | 3.25 | 0.80 | 0.60 | ||||||||||||
1522 | 500 | 3.00 | 2.70 | 3.80 | 0.40 | 0.50 | ||||||||||||
1573 | 3,000 | 1.80 | 1.60 | 2.50 | 0.75 | 0.50 | ||||||||||||
1626 | 1,000 | 4.70 | 5.20 | 6.00 | 0.50 | 1.00 | ||||||||||||
From the information above, determine the amount of Bolton Company inventory.
The amount of Bolton Company’s inventory | $ | |||
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(b) | Replacement of a minor broken part on a machine. | |||
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(c) | Expenditure that increases the useful life of an existing asset. | |||
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(d) | Expenditure that increases the efficiency and effectiveness of a productive asset but does not increase its salvage value. | |||
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(e) | Expenditure that increases the efficiency and effectiveness of a productive asset and increases the asset’s salvage value. | |||
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(f) | Expenditure that increases the quality of the output of the productive asset. | |||
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(g) | Improvement to a machine that increased its fair market value and its production capacity by 30% without extending the machine’s useful life. | |||
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(h) | Ordinary repairs. |
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11 years ago
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