The December 31, 2025 inventory of Sunland Company consisted of four products, for which certain information is provided below. Product Original Cost Estimated Disposal Normal Profit on Replacement Cost Expected Selling Price Cost Sales A $32.00 $30.00 $15.00 $48.00 28% B $50.00 $48.00 $18.00 $56.00 33% C $128.00 $123.00 $33.00 $198.00 38% D $27.00 $23.80 $12.00 $34.00 18% Determine the lower of cost or net realizable value amount for each product. Product A A LCNRV 32 B $ 37.52 C A +A 122.76 $ 27

The December 31, 2025 inventory of Sunland Company consisted of four products, for which certain information is provided below. Product Original Cost Estimated Disposal Normal Profit on Replacement Cost Expected Selling Price Cost Sales A $32.00 $30.00 $15.00 $48.00 28% B $50.00 $48.00 $18.00 $56.00 33% C $128.00 $123.00 $33.00 $198.00 38% D $27.00 $23.80 $12.00 $34.00 18% Determine the lower of cost or net realizable value amount for each product. Product A A LCNRV 32 B $ 37.52 C A +A 122.76 $ 27

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

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

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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).
Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
Calculate the cost of goods sold dollar value for A67 Company for the month, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for weighted average (AVG).
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The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
Splish Brothers, Inc. values its inventory at the lower-of-LIFO-cost-or-market. The following information is available from the company’s inventory records as of December 31, 2020. Item Quantity UnitCost ReplacementCost/Unit Estimated SellingPrice/Unit Completion & DisposalCost/Unit Normal ProfitMargin/Unit X490 8,976 $11.00 $10.52 $12.32 $2.64 $2.99 X512 4,356 6.16 6.60 7.83 0.22 1.58 X682 15,840 16.72 16.37 27.76 2.86 7.92 Z195 11,000 12.54 12.32 17.42 1.23 5.06 Z846 7,568 10.56 11.22 12.28 1.85 0.97 (a) Correct answer icon Your answer is correct. Calculate the lower-of-cost-or-market using the individual-item approach. (Round answers to 2 decimal places, e.g. 52.75.) (b) Partially correct answer icon Your answer is partially correct. Show the journal entries Splish Brothers, Inc. will…
The December 31, 2025 inventory of Migos Company consisted of four products, for which certain information is provided below. Estimated Expected Normal Profit Product Original Cost Price on Sales A $40.00 B $48.00 C $190.00 D $26.00 $24.00 20% $42.00 25% $120.00 30% $19.00 10% Show Transcribed Text Replacement Cost $22.00 $40.00 $115.00 $15.80 Disposal Cost $6.50 $10.00 $25.00 $4.00 Selling Instructions: The number of units in stock for each product at the end of the year are as follows: 200 units of Product A, 43 units of Product B, 74 units of Product C, and 120 units of Product D. Determine the appropriate value of inventory to report on the balance sheet at December 31, 2025, assuming Migos Company applies lower of cost or market for all inventory.
The inventory of Wildhorse Company on December 31, 2020, consists of the following items. Part Quantity Cost per Unit Net Realizable Value 110 660 $128.00 $135.00 111 1,040 81.00 70.00 112 540 108.00 103.00 113 210 229.50 243.00 120 410 277.00 281.00 121 a 1,700 22.00 1.00 122 280 324.00 317.00 a Part No. 121 is obsolete and has a realizable value of $1.00 each as scrap.(a) Determine the inventory as of December 31, 2020, by the LCNRV method, applying this method to each item. Inventory as of December 31, 2020 $enter the Inventory as of December 31 in dollars
The inventory of Wildhorse Company on December 31, 2020, consists of the following items. Part Quantity Cost per Unit Net Realizable Value 110 660 $128.00 $135.00 111 1,040 81.00 70.00 112 540 108.00 103.00 113 210 229.50 243.00 120 410 277.00 281.00 121 a 1,700 22.00 1.00 122 280 324.00 317.00 a Part No. 121 is obsolete and has a realizable value of $1.00 each as scrap.(a) Determine the inventory as of December 31, 2020, by the LCNRV method, applying this method to each item. (b) Determine the inventory by the LCNRV method, applying the method to the total of the inventory.
The December 31, 2020 inventory of Manatee Inc. consisted of four products, for which information is provided below: Product Quantity Cost Per Unit Replacement Cost Estimated Disposal Cost Expected Selling Price Normal Profit on Sales A 1,200 $ 25 $ 22 $ 6.5 $ 40 20% B 800 $ 42 $ 40 $ 12 $ 47 25% C 900 $ 120 $ 115 $ 25 $ 190 30% D 1,000 $ 18 $ 15.8 $ 3 $ 26 10% Instructions Using the lower-of-cost-or-market applied on an individual product basis, compute the inventory valuation that should be reported for each product on December 31, 2020.
The cost of Product E sold for the year ended July 31,2021 is: d. P1,350,000 b. P1,440,000 c. P990,000 a. P1,470,000 The cost of ending inventory for Product D is: c. P180,000 b. PP225,000 a. P270,000 d. P540,000 The Gross Profit (Loss) of Product F is: b. P101,250 c. P1,226,250 d. P(483,750) a. P168,750
Hall Company’s beginning inventory and purchases during the fiscal year ended December 31, 20--, were as follows: UnitsUnit PriceTotal CostJanuary 1Beginning inventory800$11.00$8,800March 51st purchase60012.007,200April 162nd purchase50012.506,250June 33rd purchase70014.009,800August 184th purchase80015.0012,000September 135th purchase90017.0015,300November 146th purchase40018.007,200December 37th purchase50020.3010,150 5,200 $76,700 There are 1,100 units of inventory on hand on December 31.Required:1.Calculate the total amount to be assigned to the ending inventory and cost of goods sold on December 31 under each of the following methods:(a)FIFO(b)LIFO(c)Weighted-average (round calculations to two decimal places)2.Assume that the market price per unit (cost to replace) of Hall’s inventory on December 31 was $16. Calculate the total amount to be assigned to the ending inventory on December 31 under each of the following methods:(a)FIFO lower-of-cost-or-market(b)Weighted-average…