Sunland company provided the following information of its two products: Product A Product B Cost $20 $90 Replacement cost $18 $85 Selling price $40 $120 Selling costs $6 $40 Normal profit margin $5 $30 1 12 Suppose company's ending inventory contains 1,500 units of both the products. Computethe carrying value of the company's inventory using LCM rule applied to individual products. 12

Sunland company provided the following information of its two products: Product A Product B Cost $20 $90 Replacement cost $18 $85 Selling price $40 $120 Selling costs $6 $40 Normal profit margin $5 $30 1 12 Suppose company's ending inventory contains 1,500 units of both the products. Computethe carrying value of the company's inventory using LCM rule applied to individual products. 12

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 4PA: Calculate the cost of goods sold dollar value for A74 Company for the sale on March 11, considering...

See similar textbooks

Similar questions

Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net realizable value of 300, a normal profit margin of 35, and a current replacement cost of 250. Determine the amount per unit that should be used as the market value to apply the lower of cost or market rule to determine Blacks ending inventory.
Inventory Write-Down Stiles Corporation uses the FIFO cost flow assumption and is in the process of applying the LCNRV rule for each of two products in its ending inventory. A profit margin of 30% on the selling price is considered normal for each product. Specific data for each product are as follows: Inventory Write-Down Use the information in E8-1. Assume that Stiles uses the LIFO cost flow assumption and is applying the LCM rule. Required: 1. What is the correct inventory value for each product? 2. Next Level With regard to requirement 1, what effect does the imposition of the constraints on market value have on the inventory valuations?
Calculate the cost of goods sold dollar value for B74 Company for the sale on November 20, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG).
Calculate the cost of goods sold dollar value for A74 Company for the sale on March 11, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG).
TB MC Qu. 05-131 (Algo) A company has the following products... A company has the following products in its ending Inventory. Compute lower of cost or market for inventory applied separately to each product Cost per Market per Unit Unit $ 726 $ 696 $ 526 $ 566 $ 676 $ 701 Product Quantity 10 15 20 Product A Product B Product C
A company has the following products in its ending inventory. Compute lower of cost or market for inventory applied separately to each product Market per Cost per Product Quantity Unit Unit Product A 10 $ 712 $ 682 Product B 15 $ 512 $ 552 Product C 20 $ 662 $ 687 Multiple Choice $1,921. $27,740. $1,886. O $28,040. ว $28,840.
Decker Company has five products in its inventory. Information about ending inventory follows. Unit Unit Selling Cost Product ABCDE Quantity 1,250 1,050 850 450 850 $ 23 29 5 12 28 Price The cost to sell for each product consists of a 10 percent sales commission. Required: 1. Determine the carrying value of ending inventory, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. $ 30 32 13 11 27 2. Determine the carrying value of ending inventory, assuming the LCNRV rule is applied to the entire inventory. 3. Assuming inventory write-downs are common for Decker, record any necessary year-end adjusting entry based on the amount calculated in requirement 2. View transaction list Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assuming inventory write-downs are common for Decker, record any necessary year-end adjusting entry based on the amount calculated in requirement 2. Note: If no entry is…
A company has the following per unit recorded cost and replacement cost relating to its inventory: Item 1 Item 2 5 units 7 units Cost $50 Cost $60 Item 3 9 units Cost $30 Market $45 Market $65 Market $25 Applying the lower of cost or market method, the reported value of this company's ending inventory if LCM is applied to individual items is $870 $905 $920 $940
Ames Trading Co. has the following products in its ending inventory. Quantity Cost per Unit Market per Unit 22 $550 18 390 $510 460 680 13 750 Product Mountain bikes Skateboards Gliders Compute lower of cost or market for inventory applied separately to each product. Inventory Items Mountain bikes Skateboards Gliders Units Per Unit Cost Market Cost $ $ Total 0 0 0 0 Market $ 0 0 0 0 LCM applied to each product 0
Winners Inc. has three items in its ending inventory. The company's inventory information is presented below. Item: Quantity: Cost per Selling Cost to Cost to Cost to Item: Price: Complete: Sell: Transport: TB 2,400 $3.30 $4.10 $0.95 $0.50 $0.05 VW 1,200 $6.60 $9.20 $1.40 $0.85 $0.10 RG 1,900 $4.25 $6.25 $1.25 $0.65 $0.20 Required: Using the lower-of-cost-or-net realizable value (LCNRV) approach for Winners Inc., calculate the following values. a. Determine the LCNRV for item TB. type your answer... b. Determine the LCNRV for item VW. type your answer... c. Determine the LCNRV for item RG. type your answer... d. Determine the final inventory value using a total category LNCRV method. type your answer...
Sedato Company follows the practice of pricing its inventory at LCNRV, on an individual-item basis. Item No. Quantity Cost per Unit Estimated Selling Price Cost to Complete 000 and Sell 000 1320 1,200 $3.20 $4.50 $1.60 1333 900 2.70 3.40 1.00 1426 800 4.50 5.00 1.40 1437 1,000 3.60 3.20 1.35 1510 700 2.25 3.25 1.40 1522 500 3.00 3.90 0.80 1573 3,000 1.80 2.50 1.20 1626 1,000 4.70 6.00 1.50 Instructions From the information above, determine the amount of Sedato Company inventory.
Sunland Company follows the practice of pricing its inventory at LCNRV, on an individual-item basis. Item No. Quantity Costper Unit EstimatedSelling Price Cost to Completeand Sell 1320 1,700 $3.62 $5.09 $1.81 1333 1,400 3.05 3.84 1.13 1426 1,300 5.09 5.65 1.58 1437 1,500 4.07 3.62 1.53 1510 1,200 2.54 3.67 1.58 1522 1,000 3.39 4.41 0.90 1573 3,500 2.03 2.83 1.36 1626 1,500 5.31 6.78 1.70 From the information above, determine the amount of Sunland Company inventory.