ACC/290

Question #1

 

Sadowski Video Center accumulates the following cost and market data at December 31.

Inventory Categories		Cost Data		Market Data
Cameras		$11,349		$12,459
Camcorders		8,723		9,513
DVDs		11,348		10,318

Compute the lower-of-cost-or-market valuation for Sadowski inventory.

The lower-of-cost-or-market value

$

     

Question #2

In its first month of operation, Kuhlman Company purchased 140 units of inventory for $9, then 240 units for $10, and finally 180 units for $11. At the end of the month, 210 units remained.
Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO.