Question

Review the Laura's Landscaping scenario and answer the following question. Amounts must be entered without dollar signs or commas, and must include two decimals (for example, XXxx.xx). Rounding up to the nearest cent, what is the ending inventory value for Ornamental Trees and Decorative Spotlights as of October 31 of the current year? Please explain and show your solution. Laura's Landscaping The following entries were the only entries recorded in Laura's Landscaping for the month of October: • October 15 - current year: Purchase of 10 Decorative Spotlights for $10.00 each and 10 Ornamental Trees for $125.00 each. • October 20 - current year: Laura discovers that 6 of the Decorative Spotlights are defective and sends them back to the vendor for credit. • October 25 - current year: Purchase of 3 Decorative Spotlights for $10.50 each and 10 Ornamental Trees for $110.00 each. • October 27 - current year: Laura's employee, Joe, drops an Ornamental Tree off the truck while driving to the worksite and the tree is damaged beyond repair. Laura records an inventory adjustment to reduce inventory by the 1 item • October 28 - current year: Laura creates an invoice for Francie's Fitness Center for the following items: Item Quantity Rate Amount Ornamental Trees 12 $195.00 $2,340.00 Decorative Spotlights 6 $19.95 $119.70 Labor 4 $75.00 $300.00

Answer 1

To find the ending inventory value for Ornamental Trees and Decorative Spotlights as of October 31, calculate the total cost of each item and subtract any items that were returned, damaged, or sold.

Step-by-step explanation:

To find the ending inventory value for Ornamental Trees and Decorative Spotlights as of October 31, we need to calculate the total cost of each item and subtract any items that were returned, damaged, or sold. Let's calculate it step by step:

1. Calculate the cost of the initial purchase of Decorative Spotlights: 10 Spotlights x $10.00 each = $100.00.
2. Calculate the cost of the initial purchase of Ornamental Trees: 10 Trees x $125.00 each = $1250.00.
3. Subtract the returned Decorative Spotlights: $100.00 - $0.00 = $100.00.
4. Calculate the cost of the second purchase of Decorative Spotlights: 3 Spotlights x $10.50 each = $31.50.
5. Calculate the cost of the second purchase of Ornamental Trees: 10 Trees x $110.00 each = $1100.00.
6. Calculate the cost of the damaged Ornamental Tree: 1 Tree x $125.00 = $125.00.
7. Calculate the total cost of the remaining Inventory: $100.00 + $31.50 + $1100.00 + $125.00 = $1,356.50.

Therefore, the ending inventory value for Ornamental Trees and Decorative Spotlights as of October 31 is $1,356.50.