KitchenArt Co. usually purchases its mixer inventory from Johnson Company every quarter and each quarter...
50.1K
Verified Solution
Link Copied!
Question
Accounting
KitchenArt Co. usually purchases its mixer inventory from Johnson Company every quarter and each quarter KitchenArt purchases 500 mixers. Johnson's whole sale price for each mixer is $35. On November 15, 2014, KitchenArt received an offer from Allison Company who offered $25 for each mixer if KitchenArt purchases 2,000 mixers or more from Allison. KitchenArt still had 1,000 mixer in its inventory on November 15, 2014. Which of the following statement is NOT true?
Johnson is KitchenArt's usual supplier.
KitchenArt does not need to write down its ending inventory.
The $25 price cannot be regarded as the market price for the mixer.
KitchenArt should write down its ending inventory according to LOCM
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
