Reference no: EM132789884
Problem 1: Rounding up to the nearest cent, what is the ending inventory value for Ornamental Trees and Decorative Spotlights as of October 31 of the current year?
The following entries were the only entries recorded in Laura's Landscaping for the month of October:
October 15 - current year: Purchase of 10 Decorative Spotlights for $10.00 each and 10 Ornamental Trees for $125.00 each.
October 20 - current year: Laura discovers that 6 of the Decorative Spotlights are defective and sends them back to the vendor for credit.
October 25 - current year: Purchase of 3 Decorative Spotlights for $10.50 each and 10 Ornamental Trees for $110.00 each.
October 27 - current year: Laura's employee, Joe, drops an Ornamental Tree off the truck while driving to the worksite and the tree is damaged beyond repair. Laura records an inventory adjustment to reduce inventory by the 1 item.
October 28 - current year: Laura creates an invoice for Francie's Fitness Center for the following items:
Item/ Quantity /Rate/ Amount
Ornamental Trees /12 /$195.00 /$2,340.00
Decorative Spotlights/ 6/ $19.95 /$119.70
Labor/ 4/ $75.00 /$300.00