Ames Trading Company has the following products in its ending inventory.Cost perUnitMarket perProductQuantityUnitMountain bikes20$ 610$ 550Skateboards21260320Gliders28930900Compute lower of cost or market for inventory applied separately to each product.Per UnitTotalLCM applied toeach productInventory ItemsUnitsCostMarketCostMarketMountain bikesSkateboardsGliders

Name: Ames Trading Company has the following products in its ending invento
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Ames Trading Company has the following products in its ending inventory.Cost perUnitMarket perProductQuantityUnitMountain bikes20$ 610$ 550Skateboards21260320Gliders28930900Compute lower of cost or market for inventory applied separately to each pro

Using LCM, the lower of the cost or market value is applied to the inventory valuation.

Business

Accounting

Ames Trading Company has the following products in its ending inventory. Cost per Market per Product Unit Unit Quantity Mountain bikes Skateboards Gliders 20 $ 610 $ 550 21 260 320 28 930 900 Compute lower of cost or market for inventory applied separately to each product. Per Unit Total LCM applied to each product Inventory Items Units Cost Market Cost Market Mountain bikes Skateboards Gliders

Ames Trading Company has the following products in its ending inventory. Cost per Market per Product Unit Unit Quantity Mountain bikes Skateboards Gliders 20 $ 610 $ 550 21 260 320 28 930 900 Compute lower of cost or market for inventory applied separately to each product. Per Unit Total LCM applied to each product Inventory Items Units Cost Market Cost Market Mountain bikes Skateboards Gliders

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Sheridan Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Cost of Completion and Disposal Normal Profit Item Cost per Cost to Estimated Selling No. Quantity Unit Replace Price 1320 1,600 $3.42 $3.21 $4.82 $0.37 $1.34 1333 1,300 2.89 2.46 3.75 0.54 0.54 1426 1,200 4.82 3.96 5.35 0.43 1.07 1437 1,400 3.85 3.32 3.42 0.27 0.96 1510 1,100 2.41 2.14 3.48 0.86 0.64 1522 900 3.21 2.89 4.07 0.43 0.54 1573 3,400 1.93 171 2.68 0.80 0.54 1626 1,400 5.03 5.56 6.42 0.54 1.07 From the information above, determine the amount of Sheridan Company inventory. The amount of Sheridan Company's inventory %24 eTextbook and Media
Herman 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: Product 1 Product 2 Product 3 Cost $ 20 $ 90 $ 50 Replacement cost 18 85 40 Selling price 40 120 70 Selling costs 6 40 10 Normal profit 5 30 12 Required:What unit values should Herman use for each of its products when applying the lower of cost or market (LCM) rule to ending inventory? Product Cost Replacement cost NRV NRV - NP Market Per Unit Inventory Value 1 $20 $18 2 90 85 3 50 40
None
Kingbird Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Item No. 1320 1333 1426 1437 1510 1522 1573 1626 Quantity 1,500 1,200 1,100 1,300 1,000 800 3,300 1,300 Cost per Unit $3.87 3.27 5.45 4.36 2.72 3.63 2.18 5.69 Cost to Replace $3.63 The amount of Kingbird Company's inventory 2.78 4.48 3.75 2.42 3.27 1.94 6.29 Estimated Selling Price From the information above, determine the amount of Kingbird Company inventory. $5.45 4.24 6.05 3.87 3.93 4.60 3.03 7.26 Cost of Completion and Disposal $0.42 0.61 0.48 0.30 0.97 0.48 0.91 0.61 Normal Profit $1.51 0.61 1.21 1.09 0.73 0.61 0.61 1.21
Crane Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Cost per Cost to Estimated Selling Item No. Quantity Unit Replace Price Cost of Completion and Disposal Normal Profit 1320 1,300 $3.23 $3.03 $4.55 $0.35 $1.26 1333 1,000 2.73 2.32 3.54 0.51 0.51 1426 900 4.55 3.74 5.05 0.40 1.01 1437 1,100 3.64 3.13 3.23 0.25 0.91 1510 800 2.27 2.02 3.28 0.81 0.61 1522 600 3.03 2.73 3.84 0.40 0.51 1573 3,100 1.82 1.62 2.53 0.76 0.51 1626 1,100 4.75 5.25 6.06 0.51 1.01 From the information above, determine the amount of Crane Company inventory. The amount of Crane Company's inventory $
Byron Company has five products in its inventory and uses the FIFO cost flow assumption. Specific data for each product are as follows: Estimated Cost of Disposal Product A B C D E Cost $90,000 110,000 60,000 100,000 105,000 B Selling Price $150,000 120,000 70,000 115,000 110,000 Required: 1. What is the correct inventory value, assu ing the LCNRV rule is applied to each item of inventory? Product Inventory Value A C D $20,000 15,000 5,000 5,000 8,000 E Total 2. What is the correct inventory value, assuming the LCNRV rule is applied to the total of inventory? losses relative to applying the rule to 3. Next Level Comment on any differences that result from applying the LCNRV nule to individual items compared to the total of inventory Applying the LCNRV rule to the total of inventory will result in The result occurs because the application of the LCNRV rule to groups of inventory allows price inventory valuations and the units
Ames Trading Co. has the following products in its ending inventory. Compute lower of cost or market for inventory applied separately to each product.
Marigold Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Cost of Completion and Disposal Cost per Cost to Estimated Selling Normal Item No. Quantity Unit Replace Price Profit 1320 1,400 $3.33 $3.12 $4.68 $0.36 $1.30 1333 1,100 2.81 2.39 3.64 0.52 0.52 1426 1,000 4.68 3.85 5.20 0.42 1.04 1437 1,200 3.74 3.22 3.33 0.26 0.94 1510 900 2.34 2.08 3.38 0.83 0.62 1522 700 3.12 2.81 3.95 0.42 0.52 1573 3,200 1.87 1.66 2.60 0.78 0.52 1626 1,200 4.89 5.41 6.24 0.52 1.04 From the information above, determine the amount of Marigold Company inventory. The amount of Marigold Company's inventory %24
Vishanu
A company has the following per unit original costs and market values for its inventory. Lower of cost or market is applied to individual items. Part A: 50 units with a cost of $5, and replacement cost of $4.50Part B: 75 units with a cost of $6, and replacement cost of $6.50Part C: 160 units with a cost of $3, and replacement cost of $2.50 Under the lower of cost or market method, the total value of this company's ending inventory is:
A company has the following per unit recorded cost and replacement cost relating to its inventory: Item 1 Item 2 5 units 7 units Cost $50 Cost $60 Item 3 9 units Cost $30 Market $45 Market $65 Market $25 Applying the lower of cost or market method, the reported value of this company's ending inventory if LCM is applied to individual items is $870 $905 $920 $940
acc