Question

Q 6.14: The Daily Grind sells coffee makers. Its inventory of coffee makers without timers cost $20,000 and is now valued at $10,000. Its inventory of coffee makers with timers cost $35,000 and is valued at $35,000. What is the value of the Daily Grind's inventory

Answer 1

$45,000

Step-by-step explanation:

Given the following :

Coffee makers without timer :

Inventory COST = $20,000

Present valuation = $10,000

Coffee makers with timer:

Inventory cost = $35,000

Present valuation = $35,000

The value of daily grind's inventory will be the sum of the present valuation of both coffee makers:

(Present valuation of coffee maker without timer + present valuation of coffee maker with timer)

($10,000 + $35,000) = $45,000