Data related to the inventories of Kimzey Medical Supply are presented below:SurgicalSupplies$ 190Selling priceCostSurgicalEquipment$ 3302403105840%160150RehabEquipment$ 4103203051940%Replacement costCosts to sellNormal gross profit ratioIn applying the lower of cost or market rule, the inventory of rehab supplies would be valued at:RehabSupplies$ 2352322283840%3940%

Lower of cost or market is an example of accounting conservatism.An asset may not be valued and…

Data related to the inventories of Kimzey Medical Supply are presented below: Surgical Supplies $ 190 160 150 Selling price Cost Surgical Equipment $ 330 240 310 58 40% Rehab Equipment $ 410 320 305 39 40% 19 40% Rehab Supplies $ 235 232 228 38 40% Replacement cost Costs to sell Normal gross profit ratio In applying the lower of cost or market rule, the inventory of rehab supplies would be valued at:

Data related to the inventories of Kimzey Medical Supply are presented below: Surgical Supplies $ 190 160 150 Selling price Cost Surgical Equipment $ 330 240 310 58 40% Rehab Equipment $ 410 320 305 39 40% 19 40% Rehab Supplies $ 235 232 228 38 40% Replacement cost Costs to sell Normal gross profit ratio In applying the lower of cost or market rule, the inventory of rehab supplies would be valued at:

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 9MC: Estimates of price-level changes for specific inventories are required for which of the following...

See similar textbooks

Similar questions

Data related to the inventories of Kimzey Medical Supply are presented below: Selling price Cost Replacement cost Costs to sell Normal gross profit ratio Multiple Choice O O In applying the lower of cost or market rule, the inventory of surgical equipment would be valued at: O $285. $166. Surgical Equipment $305 215 285 48 30% $215. Surgical Supplies $165 135 125 14 30% Rehab Equipment $385 295 280 34 30% Rehab Supplies $210 207 203 28 20%
Data related to the inventories of Kimzey Medical Supply are presented below: Surgical Surgical Rehab Rehab Equipment Supplies Equipment Supplies Selling price $ 335 $ 195 $ 415 $ 240 Cost 245 165 325 237 Replacement cost 315 155 310 233 Costs to sell 60 20 40 40 Normal gross profit ratio 30 % 30 % 30 % 20 % In applying the lower of cost or market rule, the inventory of surgical supplies would be valued at: Multiple Choice a. $175. b. $165. c. $155. d. $135.
Data related to the inventories of Costco Medical Supply are presented below: Surgical Surgical Rehab Rehab Equipment Supplies Equipment Supplies Selling price $ 260 $ 100 $ 340 $ 165 Cost 170 90 250 162 Costs to sell 30 15 25 10 In applying the lower of cost or net realizable value rule, the inventory of surgical supplies would be valued at: Multiple Choice $100. $90. $85. $75.
Data related to the inventories of Costco Medical Supply are presented below: Surgical Equipment $ 279- 159 Multiple Choice $150. Selling price Cost Costs to sell In applying the lower of cost or net realizable value rule, the inventory of rehab supplies would be valued at: $96. $143. $146 Surgical Supplies $ 139 96 6 12 Rehab Equipment $ 342 253 34 Rehab Supplies $ 156 150 13
Data related to the Inventories of Costco Medical Supply are presented below. Rehab Equipment $ 343 250 Selling price Cost Costs to sell Multiple Choice O O In applying the lower of cost or net realizable value rule, the inventory of surgical equipment would be valued at O $198. $164 $180 Surgical Equipment $ 268 164 12 $149 Surgical Supplies $ 122 105 10 30 Rehab Supplies $ 162 159 10
Calculate cost of goods sold and ending inventory for Emergicare’s bandages orders using FIFO, LIFO and average cost. There are 30 units in ending inventory. (Do not round intermediate calculations, such as average cost per unit values. Round your answers to the nearest cent.)
The following information relates to CEE Company: (Refer to image). Assume that the company uses the average cost approach. What is the cost ratio? Express your answer in percentage and round up to two decimal points. * Retail Cost 500,000.00 Inventory, 12/31/2021 725,000.00 Purchases 1,285,000.00 2,220,000.00 Purchase returns 20,000.00 35,000.00 Purchase discounts 30,000.00 Sales (after employee discounts) 2,450,000.00 Sales returns 125,000.00 Sales allowances 70,000.00 Mark-ups Mark-up cancellations 160,000.00 70,000.00 Mark-down 65,000.00 Mark-down cancellations 32,000.00 Freight in Employee discounts Normal loss from breakage 65,000.00 15,000.00 10,000.00
Smmons. Inc. uses the lower-of-cont-ormarket method to value s inventory that is accounted for using the FIFO method. Data regarding an tam in its inventory ls as follows Cost $26 Replacement cost 20 Selling price 30 Cost of completion and disposal 2 Normal profit margin 7. What is the lower-of-cost-or-mariket for this item?
Estimates of price-level changes for specific inventories are required for which of the following inventory methods? a. conventional retail b. weighted average cost c. FIFO d. dollar-value retail LIFO
Presented below is information related to Sheffield Inc's inventory, assuming Sheffield uses lower-of-LIFO cost-or-market. Historical cost Selling price Cost to distribute Current replacement cost Normal profit margin (per unit) Floor $ Skis $254.60 $ $ 284.08 25.46 272.02 42.88 Boots $142.04 194.30 10.72 140.70 Parkas $71.02 98.83 Determine the following: (a) The two limits to market value (i.e., the ceiling and the floor) that should be used in the lower-of-cost-or-market computation for skis. (Round answers to 2 decimal places, e.g. 52.75.) Ceiling $ 3.35 68.34 38.86 28.48 (b) The cost amount that should be used in the lower-of-cost-or-market comparison of boots. (Round answer to 2 decimal places, e.g. 52.75.) (c) The market amount that should be used to value parkas on the basis of the lower-of-cost-or-market. (Round answer to 2 decimal places, e.g. 52.75.)
Garcia Company is trying to decide whether to purchase identical inventory from one of the following suppliers. Cost Invoice terms Shipping terms Shipping cost Supplier A $280 1/10, n/30 FOB shipping point $28 Supplier B $290 2/10, n/30 FOB destination $30 Required: Assume the company will pay within the discount period. What is the actual cost of the inventory if purchased from each supplier?
Jenks Company developed the following information about its inventories in applying the lower-of-cost-or-net-realizabl e-value(LCNRV) basis in valuing inventories: Product Cost NRV A $114,000 $120,000 B 80,000 76,000 C 160,000 162,000 After Jenks applies the LCNRV rule, the value of the inventory reported on the balance sheet would be