2024 – Assume that a Rocket Burger restaurant has the following perpetual inventory record for hamburger patties
S6-11 Applying The Lower-of-cost-or-market Rule – 2024
Assume that a Rocket Burger restaurant has the following perpetual inventory record for hamburger patties:
Hamburger Patties
| date | purchases | cost of goods sold | Inventory on Hand |
|---|---|---|---|
| Feb 9 | $470 | $470 | |
| 22 | $280 | $290 | |
| 28 | $210 | $460 |
Requirements
R1. At Feb 28, the accountant for the restaurant determines that the current replacement cost of the ending inventory is $447. Make any adjusting entry needed to apply the lower of cost or market rule. Inventory would be reported on the balance sheet at what value on Feb 28?
R2. Inventory would be reported on the balance sheet at what value if Rocket uses the average cost method?
Need assignment writing services that are 100% risk-free. Our writers are capable of providing the best assignment help to students in globally at best rates.
Assignment online is a team of top-class experts whose only goal is to give you the best assignment help service. Follow the link below to order now...
#write essay #research paper
