Essay
Sarabjit Inc. produced the following information for December, 2012:
Required:
NOTE THAT EACH REQUIREMENT IS INDEPENDENT OF THE OTHERS.
a)Determine if any of the transactions near year-end should be included in the December 31, 2012 inventory balance.
b)Determine if there is any impairment of inventory at December 31, 2012.
c)Determine the cost of goods sold for December 2012.
d)The company has a historical gross margin of 25%. If sales were $400,000, what should ending inventory be at December 31, 2012?
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