Purchases: January 5, 2007
1,200
9.00
January 25, 2007
1,300
10.00
February 16, 2007
800
11.00
March 26, 2007
600
12.00
A physical inventory on March 31, 2007, shows 1,600 units on hand. Select any one of the inventory methods (LIFO, FIFO, Average Cost, or others).
1. On July 6, Jamona Corp. acquired the plant assets of Berry Company, which had discontinued operations. The appraised value of the property is:
Land
$ 400,000
Building
1,200,000
Machinery and equipment Total
800,000 $2,400,000
Jamona Corp. gave 12,500 shares of its $100 par value common stock in exchange. The stock had a market value of $168 per share on the date of the purchase of the property.
Jamona Corp. expended the following amounts in cash between July 6 and December 15, the date when it first occupied the building.
Repairs to building
$105,000