Question Details

Oakley Supply Company reports net income 



1
The Entertainment Center accumulates the following cost and market data (in 000) at December 31.
Inventory Categories	Cost Data	Market Data	
Camera	¥11,000	¥10,200
Camcorders	8,000	8,500
DVDs	14,000	13,000

What is the lower-of-cost-or-net realizable value of the inventory?


Solution 1	(5 min.)
			Lower-of-cost-
Inventory Categories	Cost Data	Market Data	or-net realizable value
Camera	¥11,000	¥10,200	¥10,200
Camcorders	8,000	8,500	8,000
DVDs	14,000	12,000	  13,000
			¥31,200
2
Oakley Supply Company reports net income of $120,000 in 2011. The ending inventory did not include goods valued at $5,000 that Oakley had consigned to Roberta- Gift Shop.

(1)	What is the correct net income for 2011?
(2)	What impact will this error have on the balance sheet at 12/31/11?




Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help