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As the External Auditor and using a standard format memo (i.e. a short report of ½ to 1 ½ pages) please explain to Mr David Buttoner:
1) The concept of valuing Inventories at the "Lower of Cost or Market" (cite the AASB Handbook section),
2) The estimated "full absorption cost" of manufacturing 100 stag horn buttons, and
3) The appropriate value for the stag horn buttons inventory in total and per 100 buttons
- show calculations to justify your answer.
This is to be answered in your groups of 3-6 students, where each group will submit one report with the names and student numbers of all group members in the heading. The assignment is due 14 May/14, in class.
During April, manufacturing costs charged to the department were: Materials $92,000; Conversion costs $102,000. The cost assigned to the units in the ending work in process inventory on April 30 was?
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