Based on a physical inventory taken on December 31, Chewy Co. determined its chocolate inventory on a FIFO basis at $26,000 with a replacement cost of $20,000. Chewy estimated that, after further processing costs of $12,000, the chocolate could be sold as finished candy bars for $40,000. Chewy's normal profit margin is 10% of sales. Under the U.S. GAAP lower of cost or market rule, what amount should Chewy report as chocolate inventory in its December 31 balance sheet?
My answer: I don't give a (insert explicit lyric here) what Chewy reports on its balance sheet. What kind of name is Chewy Co. anyway?
Actual answer: $24,000 - just in case you were trying to figure it out on your own
Sometimes studying puts me in a bad mood! At least I will be seeing this little guy later today, he always cheers me up! Today is his 1st birthday and I can't wait to see what his mommy puts together, I know it will be amazing!
I'm also going to dinner here. It's one of my favorite restaurants and I'm going with some of my favorite people so it I know it will be a good time. I just need to adjust my attitude and power through the studying today - only two more weeks until my next exam! I can see the light at the end of the tunnel, but sometimes it's just hard to keep going toward it.
Hope you all are having a fabulous weekend!
Studying. Blech. Sadly, I did kind of want to see if I could figure that out the problem, but it would take way too much brain power for a Saturday. And I am pretty sure I would have come up short.
ReplyDeleteAlso, I didn't see a mention of seeing your other favorite friend ;)! Ahem.
Um, Megan?? Bllaaauuugghhhhhh is what I have to say to that little Saturday morning quiz! Yuck!! I'm so glad you only have 2 weeks left!!
ReplyDeleteAnd for the record, I TOTALLY got the answer right!! :)
I'm glad there is an end in sight. . .but. . .that does not sound like a good Saturday morning!
ReplyDeleteGood luck:)