Inventory of the COYOTE Co. Assignment

The December 31, 2018 inventory of the COYOTE Co. consisted of 3 products, for which the following information is provided.

                        Original            Replacement     Est. Disposal     Selling             Normal Profit

Product             Cost                Cost                  Cost                  Price               on Sales

A                    $300                $280                $100                $500                30%

B                   400                  350                   90                   600                 15

C                  500                  600                  120                   700               10

 

Instructions: Using the lower of cost or market approach on an individual item basis,

  1. Compute the inventory valuation that should be reported for each product on 12/ 31/2018.
  2. Prepare any necessary journal entries for inventory on 12/31/2018. Get Accounting homework help today
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