A company normally sells its product for $20 per unit. However, the selling price has fallen to $15 per unit. This company's current FIFO inventory consists of 200 units purchased at $16 per unit. Net realizable value has now fallen to $13 per unit. What is the amount of the lower cost of market adjustment the company must make as a result of this decline in value?

What is the impact on profit for the year if Nardin Outfitters accepts the special order? (Enter your answers in thousands rounded to 1 decimal place. (i.e., 5, 400, 400 should be entered as 5, 400.4). Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.) Nardin Outfitters has a capacity to produce 18, 500 of their special arctic tents per year. The company is currently producing and selling 5,000 tents per year at a selling price of $ 1,550 per tent. The cost of producing and selling one tent follows: Variable manufacturing costs $ 570 Fixed manufacturing costs 155 Variable selling and administrative costs 145 Fixed selling and administrative costs 115 Total costs $ 985 The company has received a special order for 1,800 tents at a price of $730 per tent from Chipman Outdoor Center. It will not have to pay any sales commission on the special order, so the variable selling and administrative costs would be only $58 per tent. The special…

Company A's gross profit rate last year was 32.0% and this year it is 28.4%. Which of the following would not be a possible cause for this decline in the gross profit rate? O Company A's average margin between unit selling price and inventory unit cost is decreasing. O Company A may have seen a decline in total gross profit while maintaining net sales. Company A may have begun selling products with a higher markup. O Company A must have paid higher prices to suppliers without passing these costs on to customers.

Pool Corporation Inc. reported in its recent annual report that the industry experienced some price deflation one year followed by more normalized price inflation of approximately 2 percent overall despite price deflation for certain chemical products. This suggests that in some years Pool's overall inventory costs rise, and in some years they fall. Furthermore, in many years, the costs of some inventory items rise while others fall. Assume that Pool has only two product items in its inventory this year. Purchase and sale information are presented below. Pool uses a perpetual inventory system. Transaction Beginning inventory Purchases, February 7 Sales, February 28 Purchases, March 16 Sales, April 28 Item A Item B FIFO Inventory Item A Unit Cost Cost of Sales Units 40 80 50 100 110 $6 8 Weighted-Average 99 Inventory Item B Unit Cost Required: 1. Compute the cost of sales for each of the two items separately using the FIFO and weighted average cost inventory costing methods. (Do not…