Cost Selling price Costs to sell Product 1 2 3 $ Product 1 $ 20 40 6 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? Cost 20 $ 90 ✓ 50 NRV 34 $ Product 2 $90 120 40 X 60✔ Per Unit Inventory Value Product 3 $ 50 50 20✔ 3*3 70 10

Cost Selling price Costs to sell Product 1 2 3 $ Product 1 $ 20 40 6 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? Cost 20 $ 90 ✓ 50 NRV 34 $ Product 2 $90 120 40 X 60✔ Per Unit Inventory Value Product 3 $ 50 50 20✔ 3*3 70 10

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 3RE: Blue Corporation uses the FIFO cost flow assumption. Presented below is information related to Blues...

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Similar questions

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
Using the following data, how should the inventory be valued under lower of cost or market? Original cost 1,350 Estimated selling price 1,475 Selling expenses 180
Blue Corporation uses the FIFO cost flow assumption. Presented below is information related to Blues inventory: Determine (a) the net realizable value for each item and (b the inventory value of each item using the lower of cost or net realizable value rule.
Q.3.5 Complete the following table by filling in the missing amounts: (6) Mark-up on Cost Price Profit Selling Price Cost (excluding VAT) (excluding VAT) (excluding VAT) 25% 1 000 100% 6 000 1 500 2 500
Question: Given the historical cost of the product, Dominoe is $65, the selling price of product Dominoe is $90, costs to sell product Dominoe are $16, the replacement cost for product Dominoe is $60, and the normal profit margin is 20% of sales price, what is the amount that should be used to value the inventory under the lower-of-cost-or-market method? a. $65. b. $56. c. $60. d. $74.
Determine the proper unit inventory price in the following independent cases by applying the lower of cost or market rule. Case 1 Case 2 Case 3 Case 4 Case 5 Cost $7.80 $10.50 $11.80 $6.00 $7.20 Net realizable value 8.85 10 12.2 4.25 6.9 Net realizable value less normal profit 8.15 9 11.4 3.75 6.5 Market replacement cost 7.9 10.1 12.5 4 5.4 Instructions : Calculate the LCM for Product 1,2,3,4, and 5.
< 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. ?
Lower-of-Cost-or-Market Method On the basis of the data shown below: Inventory Item Quantity Cost per Unit Market Value per Unit (Net Realizable Value) JFW1 5,750 $9 $10 SAW9 1,040 27 24 Determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item, as shown in Exhibit 9. 76,710
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$$$B C D E Total$$$
explain your solution Operating margin Market Ratio Operating income Current Ratio = Ravenue 6957873 73686228 = 0.094 Grooss profit cost of goods solds = 0.561 26505347 47180881 Current Assets Current liabilities 72595989 53459728 = 135795657
4. Given: Mark-on (MO) = P599 Cost (C) = P1699 Mark-up rate based on cost (MU_c%) = 30% Find the selling price before increase/Regular selling price (S)
Calculate total revenue and fill in the table below. Price Quantity Total Revenue S50 60 $40 06 $35 110 S30 140 $25 190