Reference no: EM13330905

Problem :1

Eloise Camera Shop uses the lower-of-cost-or-market basis for its inventory. The following data are available at December 31.

Item		Units		Unit Cost		Market Value/Unit
Cameras
Minolta		4		$174		$159
Canon		11		144		170
Light Meters
Vivitar		14		130		113
Kodak		19		123		140

Determine the amount of the ending inventory by applying the lower-of-cost-or-market basis.

The ending inventory

$   12.125

Problem 2:

Farman Appliance Mart began operations on May 1. It uses a perpetual inventory system. During May, the company had the following purchases and sales for its Model 25 Sureshot camera.

		Purchases
Date		Units		Unit Cost		Sales Units
May 1		203		$141
May 4						116
May 8		232		$161
May 12						145
May 15		174		$176
May 20						87
May 25						116

(a1)Calculate the average cost per unit at May 1, 4, 8, 12, 15, 20 & 25.

		Average cost for each unit
May 1		$
May 4		$
May 8		$
May 12		$
May 15		$
May 20		$
May 25		$