Marigold Corp. applied FIFO to its inventory and got the following results for its ending inventory. Cameras Blu-ray players iPods 116 units at a cost per unit of $61 167 units at a cost per unit of $72 127 units at a cost per unit of $89 The net realizable value of each of these products at year-end was cameras $85, Blu-ray players $56, and iPods $73. Determine the amount of ending inventory at lower-of-cost-or-net realizable value. Ending inventory $

Marigold Corp. applied FIFO to its inventory and got the following results for its ending inventory. Cameras Blu-ray players iPods 116 units at a cost per unit of $61 167 units at a cost per unit of $72 127 units at a cost per unit of $89 The net realizable value of each of these products at year-end was cameras $85, Blu-ray players $56, and iPods $73. Determine the amount of ending inventory at lower-of-cost-or-net realizable value. Ending inventory $

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Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 2TP: Assume your company uses the periodic inventory costing method, and the inventory count left out an...

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Assume your company uses the periodic inventory costing method, and the inventory count left out an entire warehouse of goods that were in stock at the end of the year, with a cost value of $222,000. How will this affect your net income in the current year? How will it affect next years net income?
Lily Company applied FIFO to its inventory and got the following results for its ending inventory. Cameras 135 units at a cost per unit of S65 Blu-ray players 170 units at a cost per unit of S70 iPods 125 units at a cost per unit of $85 The net realizable value at year-end was cameras S73, Blu-ray players $65, and iPods $77. Determine the amount of ending inventory at lower-of-cost-or-net realizable value. Ending inventory %24
Bramble Company applied FIFO toits inventory and got the following results for its ending inventory. Cameras 130 units at a cost per unit of $65 Blu-ray players 175 units at a cost per unit of $72. IPods 125 units at a cost per unit of $85 The net realizable value at year-end was cameras $70. Blu-ray players S67, andiPods $77. Determine the amount of ending inventory at lower-of-cost-or-net realizablevalue Endinginventory 32325
Crane Company applied FIFO to its inventory and got the following results for its ending inventory. Cameras 100 units at a cost per unit of $60 Blu-ray players 150 units at a cost per unit of $70 iPods 120 units at a cost per unit of $80 The net realizable value at year-end was cameras $70, Blu-ray players $65, and iPods $75.Determine the amount of ending inventory at lower-of-cost-or-net realizable value. Ending inventory
Reeve Company applied FIFO to its inventory and got the following results for its ending inventory.VCRsDVD players iPods140 units at a cost per unit of $65 210 units at a cost per unit of $75 175 units at a cost per unit of $80The cost of purchasing units at year-end was VCRs $71, DVD players $69, and iPods $78.InstructionsDetermine the amount of ending inventory at lower-of-cost-or- Net realizable value.
SLR Corporation has 2,500 units of each of its two products in its year-end inventory. Per unit data for each of the products are as follows: Product 1Product 2Cost$80$50Selling price$145$51Costs to sell$11$3 Determine the carrying value of SLR’s inventory (i.e., ending balance) assuming that the lower of cost or net realizable value (LCNRV) rule is applied to individual products.
Han Company has three products in its ending inventory. Specific per unit data at the end of the year for each of the products are as follows: Cost Selling price Costs to sell Product 1 Product 2 Product 3 $ 25 $ 55 55 85 5 15 Product Cost 1 2 3 Required: What unit values should Han use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule to ending inventory? $.95 135 50 NRV Per Unit Inventory Value A fire destroyed a warehouse of the Goren Group, Incorporated, on May 4, 2024. Accounting records on that date indicated the following: Estimated loss from fire Merchandise inventory, January 1, 2024 Purchases to date Freight-in Sales to date $ 1,970,000 5,870,000 470,000 8,900,000 The gross profit ratio has averaged 20% of sales for the past four years. Required: Use the gross profit method to estimate the cost of the inventory destroyed in the fire.
At year-end 20X8, Ancho Canned Chile has 8,000 units on hand at a weighted-average cost of $13 per item. Sales for the year were at $16 per item. Resellers cost Ancho an average $4 per unit. a. What is Ancho’s ending inventory applying LCNRV by item? b. If the loss is not significant enough to warrant disclosure on the income statement, what year-end journal entry does Ancho record? c. If the market value of the inventory increases in the following year, can Ancho recognize the recovery?
A company adopted the LIFO method when its inventory was $1,800. One year later its ending inventory was $2,100,and costs had increased 5 % during the year.what is the ending inventory using dollar-value LIFO? Round to the nearest dollar.
SLR Corporation has 1,000 units of each of its two products in its year-end inventory. Per unit data for each of the products are as follows: Product 1 Product 2 Cost $50 $34 Replacement cost $48 $26 Selling price $70 $36 Selling costs $6 $4 Normal profit $10 $8 Determine the carrying value of SLR’s inventory assuming that the lower of cost or market (LCM) rule is applied to individual products. What is the before-tax income effect of the LCM adjustment? Product Cost Market Per Unit Inventory Value Unit Cost Lower of Cost or Market 1 1,000 2 1,000 26,000 Cost Inventory value What is the before-tax income effect of the LCM adjustment? (higher by/lower by/no effect) _______ (amount)
Sandals Company is preparing the annual financial statements dated December 31. Ending inventory is presently recorded at its total cost of $10,250. Information about its inventory items follows: Unit Cost When Acquired (FIFO) Quantity Product Line on Hand Value at Year-End Air Flow 25 $ 90 $ 92 Blister 15 80 76 Buster Coolonite 70 Dudesly 60 20 20 13 90 96 Required: 1. Compute the LCM/NRV write-down per unit and in total for each item in the table. Also compute the total overall write-down for all items. 2. How will the write-down of inventory to lower of cost or market/net realizable value affect the company's expenses reported for the year ended December 31? 3. Compute the amount that should be reported for the inventory on December 31, after the LCM/NRV rule has been applied to each item. Complete this question by entering your answers in the tabs below. Required Required Required 1 2 3 Compute the LCM/NRV write-down per unit and in total for each item in the table. Also compute…
Sunland Company had 140 units in beginning inventory at a total cost of $11,200. The company purchased 280 units at a total cost of $30,800. At the end of the year, Sunland had 75 units in ending inventory. (a) Partially correct answer icon Your answer is partially correct. Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round average-cost per unit and final answers to 0 decimal places, e.g. 1,250.) FIFO LIFO Average-cost The cost of the ending inventory $ $ $ The cost of goods sold $ $ $