(Solution) - a Moberg Company sells three different categories of tools small -(2025 Original AI-Free Solution)

Paper Details

(a) Moberg Company sells three different categories of tools (small, medium, and large). The cost and market value of its inventory of tools are as follows.

Determine the value of the company's inventory under the lower-of-cost-or-market approach.
(b) Early in 2017, Chien Company switched to a just-in-time inventory system. Its sales revenue, cost of goods sold, and inventory amounts for 2016 and 2017 are shown below.
Determine the inventory turnover and days in inventory for 2016 and 2017. Discuss the changes in the amount of inventory, the inventory turnover and days in inventory, and the amount of sales revenue across the two years.