FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Metlock Company uses the LCM method, on an individual-item basis, in pricing its inventory items because it uses LIFO to value its
inventory. The inventory at December 31, 2025, consists of products D, E, F, G, H, and I. Relevant per-unit data for these products
appear below.
Estimated selling price
Cost
Replacement cost
Estimated selling expense
Normal profit
Item D
Item E
Item F
Item G
Item H
Item I
$
$
$
$
$
Item D
$
$266
167
266
67
44
Item E
$244
178
160
67
44
Item F
$211
178
155
67
44
Item G
$200
178
67
56
44
Item H
Using the LCM rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2025, for each of the
inventory items above.
$244
111
155
67
44
Item I
$200
80
67
67
44
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Transcribed Image Text:Metlock Company uses the LCM method, on an individual-item basis, in pricing its inventory items because it uses LIFO to value its inventory. The inventory at December 31, 2025, consists of products D, E, F, G, H, and I. Relevant per-unit data for these products appear below. Estimated selling price Cost Replacement cost Estimated selling expense Normal profit Item D Item E Item F Item G Item H Item I $ $ $ $ $ Item D $ $266 167 266 67 44 Item E $244 178 160 67 44 Item F $211 178 155 67 44 Item G $200 178 67 56 44 Item H Using the LCM rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2025, for each of the inventory items above. $244 111 155 67 44 Item I $200 80 67 67 44
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