Question Details

What amount will be reported for inventory on Boson's statement 



1.	For the current month, the beginning inventory of Elipresse Inc. consisted of 3 units that cost CHF6,500 each. During the month, the company made two purchases: 4 units at CHF6,800 each and 1 units at CHF6,750. Elipresse sold 5 units during the month. If Elipresse uses specific identification and wishes to maximize net income, the units costs allocated to cost of goods sold will be:
a.	5 units@CHF6,500.
b.	4 units@CHF6,800and 1 unit @CHF6,750
c.	3 units@CHF6,500and 1 unit @CHF6,800
d.	3 units@CHF6,500,1 unit @CHF6,750and 1 unit @CHF6,800


	2.	At year-end, Dana Corporation has 2,000 units of Lolland, 2,000 units of Falster, and 3,000 units of Jultand in its ending inventory. Specific data with respect to each product follows:
						         Lolland	          Falster	         Jutland
		Historical cost			€55		€70		€98
		Net realizable value		  48		  77		  94

		What amount will Dana report for ending inventory using lower-of-cost-or-net realizable value?
a.	€518,000.
b.	€528,000.
c.	€544,000.
d.	€558,000.


	
3.	Carlsberg Corporation has 1,000 units of product#1and 2,000 units of product#2 in its inventory at December 31, 2011. Specific data with respect to each product follows:

									         Product#1       Product#2
			Historical cost					CHF40		CHF70
			Net realizable value				       45		       54

		What amount will be reported on the company statement of financial position at December 31, 2011 for ending inventory using lower-of-cost-or-net realizable value?
a.	CHF110,000.
b.	CHF144,000.
c.	CHF148,000.
d.	CHF153,000.


	4.	At December 31, 2011, Bosan Corporation has 3,500 units of model 63 and 2,500 units of model 64 in its ending inventory. Specific data with respect to each product follows:

									          Model 63        Model 64
			Historical cost					W7800		W8700
			Net realizable value				   7700		   8800

		What amount will be reported for inventory on Boson's statement of financial position after the company applies LCNRV?
a.	W54,250,000.
b.	W49,300,000.
c.	W48,950,000.
d.	W48,700,000.


	5.	Net realizable value is
a.	original cost plus costs to complete and sell.
b.	selling price.
c.	original cost less costs to complete and sell.
d.	selling cost less costs to complete and sell.





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