Palmquist Company has five different inventory items and applies the inventory valuation rules on an individual item basis. The normal markup on all items is 20% of cost. The following information is obtained from the company’s records: Item Units Cost Replacement Cost Net Realizable Value 1 500 $10.00 $ 9.10 $ 9.20 2 400    8.00   8.10   7.80 3 300  15.00 13.50 14.00 4 200  18.00 12.00 17.00 5 100  25.00 25.50 25.30 Required: 1. Assume that Palmquist uses the FIFO cost flow assumption. Compute the correct inventory value under the lower of cost or net realizable value rule.  2. Assume that Palmquist uses the LIFO cost flow assumption. Compute the correct inventory value under the lower of cost or market rule  3. Assume that Palmquist uses IFRS. Compute the correct inventory value under the lower of cost or net realizable value rule.

Q: marquis company uses a weighted averahe perpetual inventory system and has the following ourchases…

A: Formula: Average price per unit = Total purchase value / number of units Division of total purchase…

Q: Item Units Cost Replacement Cost Net Realizable Value 1 500 $10.00 $ 9.10 $ 9.20 2 400    8.00…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Garrison Company uses the retail method of inventory costing. It started the year with an Inventory…

A: Markup is the difference between the cost and sales price that is considered as profit for the…

Q: .the FIFO inventory costing method. 2.the LIFO method. 3.From the resulting data, what conclusions…

A: Requirement 1:   FIFO method:

Q: Hogan Industries had the following inventory transactions occur during 2022: Units Cost/unit Feb. 1,…

A: Lets understand the basics. Gross profit is a profit generated from the sales. Gross profit = Sales…

Q: The Danson Co. uses the periodic inventory method and had the following inventory information…

A: Cost of goods sold: (d) FIFO (e) LIFO (f) Weighted Average Units Amount ($) Units Amount ($) Units…

Q: Johnson Corporation began the year with inventory of 10,000 units of its only product. The units…

A: Inventory is the revenue expenditure incurred on the purchase of products to resell by a company.…

Q: lower of cost or net realizable value (LCNRV) rule

A: As per IAS -02 inventory is valued at lower of cost of Net Realisable value  Net Realisable Value is…

Q: The Stilton Company has the following inventory and credit purchases during the fiscal year ended…

A:

Q: The following units of an inventory item were available for sale during the year: Unit Unit Cost…

A: The average cost per unit is computed as total cost of goods available for sale divided by number of…

Q: The inventory of Royal Decking consisted of five producta. Information about the December 31, 2021,…

A: Lower of cost or net realisable is a method of valuation of inventory that is to be reported in the…

Q: At the beginning of the current period, Haitijah Industries has 150 units of a product with a unit…

A: under FIFO Method  the goods which bought first will be sold first  under LIFO method the goods…

Q: The inventory of Royal Decking consisted of five products. Information about the December 31, 2021,…

A: Product   Selling price   Less: Sales commission   Less: Shipping costs   NRV  A…

Q: Decker Company has five products in its inventory. Information about the December 31, 2016,…

A: LCM (Lower of Cost or Market) approach: It is an approach that values the inventory at historical…

Q: Mariah Company has inventory at the end of the year with a historical cost of $88,000, Mariah…

A: Journal entry is a record of financial transaction in the books of accounts by an organization. It…

Q: ALOHA Company determined the following information for an inventory at year end. Historical Cost P…

A: Inventory at year end = Lower of Cost or Net realizable value where, Net realizable value =…

Q: As of 12-31-15, Zena Company has four different inventory items on hand. Data on the four items…

A: Inventory Valuation: Inventory valuation is the cost associated with the inventory of a company at…

Q: Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory…

A: The inventory is the current assets of the company.

Q: At the beginning of the current period, Viraat Industries, which uses a periodic inventory system,…

A: a. Cost of goods sold = Beginning Inventory units + Purchase #1 units + Purchase #2 40 units =…

Q: Mic Drop Company uses the first-in, first-out retail method of inventory valuation. The following…

A: Answer B  P220,000

Q: Mater Company uses the periodic inventory method and had the following inventory information…

A: Hey, since you have uploaded multiple questions,  as per guidelines I will answer first question…

Q: Starlight Company has inventory of 8 units at a cost of $200 each on October 1. On October 2, it…

A: As per LIFO method it assumes units purchased at last is sold out first. On oct4, the sold units are…

Q: Inventory Write-Down Palmquist Company has five different inventory items and applies the inventory…

A: An inventory write-down is a necessary process used to indicate when an inventory loses value and…

Q: ompkins Company reports the following inventory record for November:   INVENTORY Date Activity #…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: Sarasota Inc. had beginning inventory of $20,600 at cost and $30,600 at retail. Net purchases were…

A: Retail method: One of the accounting method where the value of the merchandise or goods sold is…

Q: pany had the following transactions: Beginning inventory, 200 at P5 per unit; purchased on January…

A: Solution: Introduction: Inventory Valuation Methods are generally used to determine the Cost of…

Q: Of the 1,600 units sold during the period, 300 were from the beginning inventory; 500 from the first…

A: Given:

Q: Pronghorn Company uses the periodic inventory method and had the following inventory information…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Maple Company started the year with no inventory. During the year, it purchased two identical…

A: Given the following information: Cost of first unit: $800 Cost of second unit: $700

Q: Lisa Company uses the periodic inventory system and had 100 units in beginning inventory at a total…

A: given that, beginnig inventory = 100 units @ $10000 purchases = 200 units @ $26000   closing stock =…

Q: Coleman Company has provided the following information: beginning inventory, $100,000; cost of goods…

A: Formula: Ending inventory= beginning inventory + Purchases - cost of goods sold

Q: Montero Company maintains a perpetual inventory system and sells all its inventories at a price of…

A: Under FIFO method, goods purchased first are to be sold first and newer goods are left in stock or…

Q: Vaughn Company had 100 units in beginning inventory at a total cost of $12,000. The company…

A: Total cost of goods available for sale = Beginning inventory + Purchases = $12,000 + $30,000 =…

Q: The inventory of Royal Decking consisted of five products. Information about the December 31, 2021,…

A: Per Unit Cost under LCM = Lower of Cost or Market Value Under the US GAAP "market" gen­er­ally means…

Q: Forester Company has five products in its inventory. Information about the December 31, 2021,…

A: Normally the inventory is valued  at costs but if the selling price drops down  below costs ,as…

Q: As of 12-31-15, Acme Company has three different inventory items on hand. Data on the three items…

A: Hence, NRV for item A, item B and item C is $1,400,$375 and $750 respectively.NRV for each item is…

Q: Crane Company had 100 units in beginning inventory at a total cost of $8,000. The company purchased…

A: Cost per unit of beginning inventory = $8,000 /100 units = $80 per unit Cost per unit of purchase…

Q: Bramble Corp. has the following data related to an item of inventory: Inventory, March 1 440 units @…

A: First In, First Out (FIFO) is part of an accounting method where goods which are acquired first are…

Q: heffield Corp. sells one product and uses a perpetual inventory system. The beginning inventory…

A: Cost of goods sold method is that the expense which incurred directly for the creation of products.…

Q: Valuing Inventory at Lower-of-Cost-or-Market Gard Inc. has compiled the following information…

A: Value of Inventory in the balance sheet is always recorded on Cost or Market whichever is low as per…

Q: Traylor Corporation began the year with three items in beginning inventory, each costing $5. During…

A: Particulars Units Price per unit Total value Beginning inventory 3 $5 $15 Purchases 5 $6 $30…

Q: 1. Assume that Palmquist uses the FIFO cost flow assumption. Compute the correct inventory value…

A: Inventory Write-Downs:   If the utilizing capacity of inventory by the company drops down below the…

Q: Sheldon Company's inventory records for the most recent year contain the following data: Click the…

A: Inventory valuation methods are based on the flow of inventory used by the organization. There are…

Q: Company Y had the following transactions in Year 2. The perpetual FIFO inventory system is used. 1.…

A: There are different accounting methods of available to record the inventory out of which the company…

Q: Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory…

A: Rate after profit=100%-Normal profit rate=100%-20%=80%

Q: me following units of an item were available for sale during the year: eginning inventory 20,000…

A: The perpetual method of inventory is an effective as well as accurate method for recording the…

Q: The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for…

A: First-in-First-Out (FIFO): In First-in-First-Out method, the cost of initial purchased items are…

Q: The Jones Company completed its inventory count and arrived at a total inventory value of $216,000.…

A: solution concept goods sold on consignment basis               There are two parties involved in…

Q: Forester Company has five products in its inventory. Information about the December 31, 2021,…

A: lower of cost or market (LCM) rule for inventory valuation considers the market value of inventory…

Q: Sunland Company had 140 units in beginning inventory at a total cost of $11,200. The company…

A: Cost of goods sold is calculated by adding the opening balance and purchases and subtracting the…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.