Please ONLY answer if you can answer all three, I\'m sorry it\'s just that I am
ID: 2575886 • Letter: P
Question
Please ONLY answer if you can answer all three, I'm sorry it's just that I am out of questions, and I really need help with this hw. Please show ALL work as well. Thank you !
3. Lenny Co. sells product 2005WSC for $40 per unit. The cost of one unit of 2005WSC is $36, and the replacement cost is $35. The estimated cost to dispose of a unit is $8, and the normal profit is $16. At what amount per unit should product 2005WSC be reported, applying lower-of-cost-or-market?
Answer Choices: A) $16 B) $35. C).$32 D)$36
I am stuck between whether or not the answer is $32 or $36, please show all work and explain why the other answer is wrong (either 32 or 36) Someone asked this question previously and on chegg two different answrs $32 and $36 show up
1. At a lump-sum cost of $64,000, Tina Inc. recently purchased the following items for resale: Item No. of Items Purchased Resale Price Per Unit 3000 1500 5000 53.25 11.00 5.00 The appropriate cost per unit of inventory is: A. S3.25 $11.00S5.00 B. S4.06 S13.74 S6.24 C. S3.66 S12.37S5.62 D. S6.74 S6.74 S6.74 2. Linda Chang has two products in its ending inventory, each accounted for at the lower of cost or market. A profit margin of 30% on selling price is considered normal for each roduct. Specific data with respect to each product follows: Product #2 S17 14 Product #1 Cost S10 Replacement cost Estimated cost to dispose Estimated selling price 20 30 In pricing its ending inventory using the lower-of-cost-or-market, what unit values should Sunland use for products #1 and #2, respectively? A. S11 and S14 B. S10 and $16 C. S9 and S1 D. S10 and S17Explanation / Answer
1. B. $4.06, $13.74, $6.24
Purchase price - Resale price = 64,000-51,250= 12,750
Percentage = 12750/51250= 25%
Increase the resale price to 25%.
2. D. $10 and $17
Estimated selling price is higher than the cost.
3. D)$36
Estimated selling price is higher than the cost.
Item No. of Items Purchased Resale Price Per Unit Resale Price A 3000 3.25 9750 B 1500 11 16500 C 5000 5 25000 Total 51250