Information pertaining to the inventory of Palette Company follows. LIFO Cost Selling Price Replacement Cost Category: Supreme Item A $5,600 $6,400 $4,800 Item B 7,200 7,200 7,680 Item C 17,600 17,600 16,800 Category: Classic Item X 28,800 28,800 30,400 Item Y 35,200 42,400 41,600 Item Z 56,000 48,000 52,800 The company has a normal profit margin of 20% of selling price and has no additional costs to complete or sell the items. What is the lower-of-cost-or-market value of the company's inventory applying the rule to (a) each individual item and (b) to each inventory category? Select one: a. Inventory item: $150,400; Inventory Category: $150,400 b. Inventory item: $141,120; Inventory Category: $147,520 c. Inventory item: $147,200; Inventory Category: $147,200 d. Inventory item: $143,520; Inventory Category: $150,400 9 APR 35,874 11 A 甲

Information pertaining to the inventory of Palette Company follows. LIFO Cost Selling Price Replacement Cost Category: Supreme Item A $5,600 $6,400 $4,800 Item B 7,200 7,200 7,680 Item C 17,600 17,600 16,800 Category: Classic Item X 28,800 28,800 30,400 Item Y 35,200 42,400 41,600 Item Z 56,000 48,000 52,800 The company has a normal profit margin of 20% of selling price and has no additional costs to complete or sell the items. What is the lower-of-cost-or-market value of the company's inventory applying the rule to (a) each individual item and (b) to each inventory category? Select one: a. Inventory item: $150,400; Inventory Category: $150,400 b. Inventory item: $141,120; Inventory Category: $147,520 c. Inventory item: $147,200; Inventory Category: $147,200 d. Inventory item: $143,520; Inventory Category: $150,400 9 APR 35,874 11 A 甲

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 2RE: Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net...

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