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Departures from Acquisition Cost Determine the proper total inventory value for each of the following items...

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Accounting

Departures from Acquisition Cost Determine theproper total inventory value for each of the following items inPacker Company’s ending inventory:

  1. Packer has 60 model X3 cameras in stock. The cameras cost $260each, but their year-end replacement cost is only $240. Packer hasbeen selling the cameras for $310, but competitors are now sellingthem for $280. Packer plans to match the selling price at $280.Packer’s normal gross profit on cameras is 35 percent.
  2. Packer has 550 rolls of film that are past the expiration datesince film is now a slow moving item. The film cost $1.90 each andnormally sells for $3.90. New replacement film still costs $1.90.Packer has put the expired film on clearance and is selling it for$1.40 per roll. There are no related selling costs.
  3. Packer has four computers in stock that have been used asdemonstration models. These computers cost $500 and normally sellfor $650. Because they are used, Packer is selling them for $450each. Expected selling costs are $60 per computer. New models ofthe computer (on order Z) will cost Packer $520 and will be pricedto sell at $690.

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