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Category > Accounting Posted 01 Jun 2017 My Price 6.00

Cost flow model

21.   Cost flow model. A flood has destroyed the inventory of the AquaMan Corporation. Before paying for damages, the JRC Insurance Company wants to know the amount of ending inventory that is missing. You have been hired to search through the water-sodden mess to find as much information as you can. You find the following information about four of Aqua Man’s big-selling inventory items:

 

Item

 

 

Rubber Rafts

Rubber Duckies

 

Galoshes

Diving Equipment

Beginning inventory..............................................

$160,000

$60,000

$ 60,000

?

Transfers into inventory accounts......................

180,000

90,000

480,000

$120,000

Transfers out of inventory accounts..................

240,000

110,000

540,000

150,000

Ending inventory ....................................................

?

?

?

?

 

Compute the ending inventory, which is the amount destroyed by the flood, for any of the products that you can. You may not be able to compute ending inventory for all products. If you cannot compute the ending inventory, state what additional information you need.

 

Answers

Alpha Geek
(8)
Status NEW Posted 01 Jun 2017 03:06 PM My Price 6.00

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