Question

A company like Golf USA that sells golf-related inventory typically will have inventory items such as golf clothing and golf equipment. As technology advances the design and performance of the next generation of drivers, the older models become less marketable and therefore decline in value. Suppose that in the current year, Ping (a manufacturer of golf clubs) introduces the MegaDriver II, the new and improved version of the MegaDriver. Below are year-end amounts related to Golf USA’s inventory. Inventory Quantity Unit Cost Unit NRV Shirts 30 $ 55 $ 65 MegaDriver 10 310 225 MegaDriver II 25 325 370

Calculate the total recorded cost of ending inventory before any adjustments.

Answer 1

Answer:

ending inventory before adjustment: 12,875

Explanation:

The ending inventory before adjustment will be at cost.

The company at year-end will adjust for the difference the cost and the lower-or-cost rule:

                                        COST     NRV

Shirts             30 units  $  55      $   65

MegaDriver    10 units  $ 310     $ 225

MegaDriver II 25 units $ 325     $ 370

Inventory before adjustment:

30 *25 + 10 * 310 + 25*325 =

  1650 +    3100   +   8125   = 12,875

Answer 2

Golf USA's total recorded cost of Ending Inventory before any adjustments is $12,875.

• This total cost is calculated by multiplying the unit costs of Shirts, Mega Driver, and Mega Driver II with their individual quantities, and then summing up the results.

Data and Calculations:

Inventory  Quantity   Unit Cost       Total Cost

Shirts               30           $ 55            $1,650

Mega Driver     10             310              3,100

Mega Driver II 25            325              8,125

Total cost of ending inventory       $12,875

Thus, to find the total cost of Golf USA's Ending Inventory, the costs of individual inventory items will be computed and added together.

Learn more about ending inventory at https://brainly.com/question/19132743