Purchase Solution

Using separate costing methods to calculate the value of Vita Rite's ending inventory

Not what you're looking for?

Ask Custom Question

On December 29, the FDA announced that these vitamins from Vita-Rite Vitamin Co. caused heart palpitations in users age 40-55. As a result of this announcement, the net realizable value of the product dropped 20%.

Using the lower of cost or market, show the value of the company's ending inventory.

What is the range between the three costing methods?
What is the journal entry to record this event? And
how is it handled in the financial statements?

USING THESE NUMBERS
FIFO = 81545
LIFO = 80640
AVERAGE COST METHOD= 81163.

Purchase this Solution

Solution Summary

The solution uses different costing methods to write a journal entry to calculate the value of Vita Rite Vitamin's ending inventory.

Purchase this Solution


Free BrainMass Quizzes
Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Operations Management

This quiz tests a student's knowledge about Operations Management

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.