This is a continuation of problem 15. At December 31, Year 2, Beech Corporation still had the

Question:

This is a continuation of problem 15. At December 31, Year 2, Beech Corporation still had the same three different products in its inventory. The following table provides updated information for the company’s products:

Replacement Selling Price Product Cost Cost 101 $130 $180 $190 202 $160 $150 $160 303 $100 $100 $130

Beech Corporation still expects to incur selling costs equal to 5 percent of the selling price.

Required:

a. Determine the amount at which Beech should report its inventory on the December 31, Year 2, balance sheet.

b. How would your answer above differ if Beech used U.S. GAAP rather than IFRS?

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

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