Assume that a Rocket Burger restaurant has the following perpetual inventory record for hamburger patties: Requirements 1.

Question:

Assume that a Rocket Burger restaurant has the following perpetual inventory record for hamburger patties:

Hamburger Patties Cost of Inventory Purchases Goods Sold on Hand Date Feb 9 $ 470 470 24 22 280 190 28 210 400

Requirements
1. At February 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 February 28?
2. Inventory would be reported on the balance sheet at what value if Rocket uses the average-costmethod?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...