Presented below is data relative to the 12/31/23 inventory of Traynor Trailer Company:Number UnitsOriginal CostTotalCurrentItemIn InventoryPer UnitOriginal CostReplacement Cost1,000$1.09$1,090$1.081,0001.301,3001.15C1,0001.501,5001.05D1,0001.601,6001.65E1,0001.801,8001.90Total5.000$7.290Additional Data: Selling price is $2.00/unit for all items. Disposal costs amount to 15% of selling priceand a "normal" profit is 30% of selling price. Traynor uses the LIFO method of inventory valuation.REQUIRED:a. Determine the write-down to market required. Use the Individual Inventory ItemsApproach to LCM Valuation. (You are not required to record the adjusting entry).b. Repeat Part (a) assuming that Traynor uses the FIFO method.

Upper limit (ceiling or net realizable value) : = Selling price - Disposal costs Selling price for…

Presented below is data relative to the 12/31/23 inventory of Traynor Trailer Company: Number Units Original Cost Total Current Item In Inventory Per Unit Original Cost Replacement Cost A 1,000 $1.09 $1,090 $1.08 1,000 1.30 1,300 1.15 C 1,000 1.50 1,500 1.05 D 1,000 1.60 1,600 1.65 1,000 1.80 1,800 1.90 Total 5.000 $7,290 Additional Data: Selling price is $2.00/unit for all items. Disposal costs amount to 15% of s and a "normal" profit is 30% of selling price. Traynor uses the LIFO method of inventory valu REQUIRED: a. Determine the write-down to market required. Use the Individual Inventory Approach to LCM Valuation. (You are not required to record the adjusting entr b. Repeat Part (a) assuming that Traynor uses the FIFO method.

Presented below is data relative to the 12/31/23 inventory of Traynor Trailer Company: Number Units Original Cost Total Current Item In Inventory Per Unit Original Cost Replacement Cost A 1,000 $1.09 $1,090 $1.08 1,000 1.30 1,300 1.15 C 1,000 1.50 1,500 1.05 D 1,000 1.60 1,600 1.65 1,000 1.80 1,800 1.90 Total 5.000 $7,290 Additional Data: Selling price is $2.00/unit for all items. Disposal costs amount to 15% of s and a "normal" profit is 30% of selling price. Traynor uses the LIFO method of inventory valu REQUIRED: a. Determine the write-down to market required. Use the Individual Inventory Approach to LCM Valuation. (You are not required to record the adjusting entr b. Repeat Part (a) assuming that Traynor uses the FIFO method.

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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