Cullumber Inc has the following information related to an item in its ending inventory. Acer Top...
Cullumber Inc has the following information related to an item in its ending inventory. Acer Top has a cost of $30, a replacement cost of $27, a net realizable value of $31, and a normal profit margin of $3. What is the final-lower of cost or market inventory value for Acer Top?
Homework Answers
Cost = $30
Market value = NRV - Normal profit margin = 31 - 3 = $28
Ending inventory = Lower of cost or market inventory
= Lower of 30 or 28
= $28
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