Give a brief description of the case Write in the context of taking the role of...

 

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Give a brief description of the case Write in the context of taking the role of the companies controller. Questions 1. Determine the value of the ending inventory 2. Determine the corresponding cost of goods sold expense for the disc importers for 2004 fiscal year. under each of the four available methods. 3. Identify which method will best meet the concern of each of the four executives in this case. 4. Apply the lower of cost or market value to verify that the cost based valuations are, in fact, lower than the current market value of the inventory. 5. You can also show the impact of freight charge, theft or damaged or even shrinkage in the cost of goods sold. Page 4 9A84K013 Exhibit 1 PURCHASE RECORDS FOR THE 2004 FISCAL YEAR Quantity Remaining Quantity Received Unit Date Purchase Freight Charges on Lot No. Received (Units) Cost September 30, 2004 O/B 10,000 $4.00 $1,000 2,000 #1 November 2003 25,000 4.25 1,250 5,000 February 2004 May 2004 August 2004 #2 30,000 4.35 1,500 13,000 #3 15,000 4.53 1,050 8,000 # 4 40.000 4.61 1,600 31.000 120,000 59,000 COPY Give a brief description of the case Write in the context of taking the role of the companies controller. Questions 1. Determine the value of the ending inventory 2. Determine the corresponding cost of goods sold expense for the disc importers for 2004 fiscal year. under each of the four available methods. 3. Identify which method will best meet the concern of each of the four executives in this case. 4. Apply the lower of cost or market value to verify that the cost based valuations are, in fact, lower than the current market value of the inventory. 5. You can also show the impact of freight charge, theft or damaged or even shrinkage in the cost of goods sold. Page 4 9A84K013 Exhibit 1 PURCHASE RECORDS FOR THE 2004 FISCAL YEAR Quantity Remaining Quantity Received Unit Date Purchase Freight Charges on Lot No. Received (Units) Cost September 30, 2004 O/B 10,000 $4.00 $1,000 2,000 #1 November 2003 25,000 4.25 1,250 5,000 February 2004 May 2004 August 2004 #2 30,000 4.35 1,500 13,000 #3 15,000 4.53 1,050 8,000 # 4 40.000 4.61 1,600 31.000 120,000 59,000 COPY

Answer rating: 100% (QA)

Working Note1 Lot Particulars Units Rate Cost Freight Total Cost Cost per unit OB Opening 10000 4 40... View the full answer