Winedark Sea Ltd sells prints of classic paintings. The prints are done on expensive paper and...

  

Transcribed Image Text:

Winedark Sea Ltd sells prints of classic paintings. The prints are done on expensive paper and are quite costly. Pricing the prints to sell is hard because the popularity of a print is difficult to predict. Sometimes prints don't sell well at all and are then disposed of in bulk for use in hotels and motels. Here are data on two prints: Inventory 1 December 2019 Purchases during December. 11 December 18 December Sales during December 15 December 21 December Print X Units 5 12 15 12 11 Print X Cost per unit S 520 550 530 Print Y Units 12 20 30 22 16 Print Y Cost per unit $ 520 490 510 Requirements (1) Calculate the following:(6 marks) a. Inventory cost, 31 December 2019, for Print X, FIFO basis b. Inventory cost, 31 December 2019, for Print Y, LIFO basis (2) Print Y hasn't sold at a good price. No one seems to like it anymore. An out-of-town hotel has offered $200 for each Print Y that Winedark has left, if Winedark will pay the $10 per print shipping cost. What amount would you suggest be used for the inventory of Print Y on the 31 December 2019 balance sheet? (4 marks) (3) Why? (4) (No.4 fill-in-blank need give a short explaination) Winedark Sea Ltd sells prints of classic paintings. The prints are done on expensive paper and are quite costly. Pricing the prints to sell is hard because the popularity of a print is difficult to predict. Sometimes prints don't sell well at all and are then disposed of in bulk for use in hotels and motels. Here are data on two prints: Inventory 1 December 2019 Purchases during December. 11 December 18 December Sales during December 15 December 21 December Print X Units 5 12 15 12 11 Print X Cost per unit S 520 550 530 Print Y Units 12 20 30 22 16 Print Y Cost per unit $ 520 490 510 Requirements (1) Calculate the following:(6 marks) a. Inventory cost, 31 December 2019, for Print X, FIFO basis b. Inventory cost, 31 December 2019, for Print Y, LIFO basis (2) Print Y hasn't sold at a good price. No one seems to like it anymore. An out-of-town hotel has offered $200 for each Print Y that Winedark has left, if Winedark will pay the $10 per print shipping cost. What amount would you suggest be used for the inventory of Print Y on the 31 December 2019 balance sheet? (4 marks) (3) Why? (4) (No.4 fill-in-blank need give a short explaination)

Answer rating: 100% (QA)

Particulars Opening Stock Purchases Sales Closing Stock Remarks December 12019 5 5 Add December 1120... View the full answer