Applying the lower-of-cost-or-market method to each item of inventory, what should the total inventory value be for the following items?Total Cost Total MarketInventoryItemQuantityCostper UnitMarket ValueTotalper UnitPricePriceLCMA181$12$17$2,172$3,077$B9118161,6381,456C701022251,5401,750PreviousNext

Step 1: Since the valuation of Inventory is the lower of cost or market value, we just need to…

Answered: Applying the lower-of-cost-or-market…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Determine the valuation of the inventory following the measurement at Lower of Cost and Net Realizable Value.
On the basis of the following data, determine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in Exhibit 10. Product InventoryQuantity Cost PerUnit Market Value per Unit(Net Realizable Value) Class 1: Model A 25 $113 $127 Model B 13 274 289 Model C 17 217 195 Class 2: Model D 31 70 59 Model E 39 61 45 Question Content Area a. Determine the value of the inventory at the lower of cost or market applied to each item in the inventory. Inventory at the Lower of Cost or Market Product InventoryQuantity Costper Unit Market Valueper Unit(Net RealizableValue) Cost Market Lower ofCost orMarket Model A Model A $Model A $Model A $Model A $Model A $Model A Model B Model B Model B Model B Model B Model B Model B Model C Model C Model C…
If the cost of an item of inventory is $49 and the current replacement cost is $63, the amount included in inventory according to the lower of cost or market is Oa. $63 Ob. $112 Oc. $49 Od. $14
Lower-of-Cost-or-Market Method On the basis of the data shown below: Item InventoryQuantity Cost perUnit Market Value per Unit(Net Realizable Value) A13Y 152 $49 $52 O5T4 290 25 22 Determine the value of the inventory at the lower of cost or market by applying lower of cost or market to each inventory item, as shown in Exhibit 9. $
< Lower-of-Cost-or-Market Inventory On the basis of the following data, determine the value of the inventory at the lower of cost or market. Product Adams Coolidge McKinley Garfield Lincoln Total Feedback Inventory Quantity Cost per Unit 45 13 47 23 36 $206 239 211 289 262 Market Value per Unit (Net Realizable Value) $191 232 200 296 241 $ Cost Total Market $ 26,980 X $ LCM 24,478 X Check My Work Multiply the number of units by the unit cost price and enter the total cost amount in the Cost column. Multiply the number of units by the unit market price and enter the total market amount in the Market column. Then, enter the lower of the two amounts from the Cost and Market columns in the LCM column. Finally, total the columns. The total of the LCM column shows the total lower-of-cost-or-market applied on an item-by-item basis. ?
Company Z had the following information: inventory at cost of $5,100, selling value of inventory of $5,250, inventory cost of completion of $100, inventory cost of distribution of $150, normal profit margin of $2,000, and inventory replacement cost of $4,800. What is the floor amount to be used in the determination of the inventory's market value in the lower-of- cost-or-market method of inventory? O $3,000 O $5,000 O $4,800 O $5,250
Your Company carries inventory at the lower of cost or market. Using the information below, what is the adjustment needed to the Inventory account? Item Units A B C D 75 100 500 250 $300 credit O $1,000 credit O $1,300 credit $300 debit $1,300 debit $1,000 debit Inventory market value $30 cost $25 $30 $75 $120 $27 $73 $130
45 Calculate gross profit from the following? Sales OMR 25000, Cost of goods sold OMR 15000 and Return inwards OMR 5000. t of O a. OMR 10000 stion O b. OMR 15000 O c. OMR 5000 O d. OMR 45000 In which of the following Inventory techniques are the 立

On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item. Item A B с Total Inventory Quantity 181 82 60 Cost per Unit $10 14 20 Market value per Unit $14 11 22 Cost $1,810 1,148 1,200 Total Market $2,534 902 1,320 LA LCM
Using the lower of cost or market, what should the total inventory value be for the following items: Item Quantity Unit cost price Unit market price Total cost price Total market price A 200 $15 $14.50 $3,000 $2,900 B 100 $14 $15.00 $1,400 $1,500 C 50 $17 $17.50 $850 $875
Lower-of-Cost-or-Market InventoryOn the basis of the following data, determine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in Exhibit 9. ProductInventoryQuantityUnitCost PriceUnitMarket Value per Unit(Net Realizable Value)Model A300$140$125Model B50090112Model C1506059Model D800120115Model E400140145 Inventory at the Lower of Cost or MarketProductTotal CostTotal MarketLower of Total Cost or Total MarketA$$$B C D E Total$$$
Based on the data below, how would the merchandise inventory appear on the balance sheet, assuming that the lower of cost or market is used and the cost is determined by the FIFO method? Total cost: $74, 300 Total market: $72,900 Lower of cost or market: $70, 400 The merchandise inventory would appear in the current assets section, as follows: Merchandise inventory - at lower of cost (FIFO) or market is

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