. What is the difference in current replacement cost and designated market value as far as...
. What is the difference in current replacement cost and designated market value as far as lower of cost or market?
Homework Answers
Current replacement cost means the cost of replacing the asset. For example, if XYZ company has 1 unit of stock ABC and they want to replace it with new stock and they go to wholesaler to buy it. The price which XYZ company pays to the wholesaler is the replacement cost. It could be more or less than the current market price of the asset.
Designate market value is the value that the buyer is willing to pay.
For example, if XXX associates have 10 units of product Z and buyers are willing to pay $50 for each product. Then, $50 is the designated market value of the product Z.
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. What is the difference in current replacement cost and
designated market value as far as...
If the cost of an item of inventory is $49.00 and the current replacement cost is $66.00, what is the amount included in...
If the cost of an item of inventory is $49.00 and the current replacement cost is $66.00, what is the amount included in inventory according to the lower of cost or market? Select the correct answer. $66.00 $49.00 $115.00 $17.00
QUESTION 9 Under the lower-of-cost-or-market basis in valuing inventory, market is defined as a. current replacement...
QUESTION 9 Under the lower-of-cost-or-market basis in valuing inventory, market is defined as a. current replacement cost. b. selling price. C. historical cost plus 10%. d. selling price less markup.
A company's total cost of FIFO inventory was $329,000 and its current replacement cost is $307,000....
A company's total cost of FIFO inventory was $329,000 and its current replacement cost is $307,000. Under the lower cost or market, the amount reported should be $329,000. True or False.
Following information is related to Product X of Zempa Company: Current replacement cost $230 Cost to...
Following information is related to Product X of Zempa Company: Current replacement cost $230 Cost to distribute $42 Historical cost $215 Normal profit margin $36 Selling price $245 If lower-of-cost-or-market rule (LCM Rule) is applied, then the value of Product X that would be reported in the balance sheet is: a. $215 b. $230 c. $203 d. $167
Cost Net realizable value Net realizable value less normal profit Market replacement cost 1 $6.90 9.15...
Cost Net realizable value Net realizable value less normal profit Market replacement cost 1 $6.90 9.15 8.15 7.00 2 $11.45 9.95 9.20 10.05 3 $11.65 13.30 11.20 13.60 4 $6.90 5.10 3.80 4.85 5 $8.05 6.95 6.25 4.50 Determine the proper unit inventory price in the above independent cases by applying the lower of cost or market rule. Case 1 s Case 2 Case 3 Case 4 Case 5
For companies using LIFO, inventory is valued at: Multiple Choice Net realizable value. Cost. Replacement cost....
For companies using LIFO, inventory is valued at: Multiple Choice Net realizable value. Cost. Replacement cost. Lower of cost or market.
Cost Net realizable value Net realizable value less normal profit Market replacement cost 1 $7.60 9.05 8.50 7.70 2 $11....
Cost Net realizable value Net realizable value less normal profit Market replacement cost 1 $7.60 9.05 8.50 7.70 2 $11.30 9.80 8.75 9.90 3 $11.65 12.40 11.00 12.70 4 $6.05 5.10 3.25 4.85 5 $7.60 6.90 5.80 4.50 Determine the proper unit inventory price in the above independent cases by applying the lower of cost or market rule. Case 1 $ Case 2 Case 3 Case 4 Case 5
Thank you ! The original cost of an item of inventory is above its replacement cost....
Thank you !
The original cost of an item of inventory is above its replacement cost. The item's replacement cost is below its net realizable value but is higher than its net realizable value minus a normal profit. Under the lower of cost or market method, the inventory item should be valued at Multiple Choice Net realizable value Original cost Replacement cost Net realizable value less normal profit margin
PLEASE, INCLUDE ALL THE MATHEMATICAL PROCEDURE. THANKS! HCH Corporation sells copying machines and replacement toners. HCH...
PLEASE, INCLUDE ALL THE MATHEMATICAL PROCEDURE. THANKS!
HCH Corporation sells copying machines and replacement toners. HCH Corporation sells two models - Model A and Model B. HCH Corporation provided the following information regarding inventory at the end of the current year. Cost of Completion and Disposal Normal Profit Cost S35 170 Item Number of Replacement Selling Units Cost Price Price Model A Copying Machine 2,000 $155 S210 Replacement Toner 1.500 401 55 Model B Copying Machine 3.400 2 15 235...
Part Four: Problem (15 points) HCH Corporation sells copying machines and replacement toners. HCH Corporation sells...
Part Four: Problem (15 points) HCH Corporation sells copying machines and replacement toners. HCH Corporation sells two models - Model A and Model B. HCH Corporation provided the following information regarding inventory at the end of the current year. Item Cost Number of Units Replacement Selling Cost Price Cost of Completion and Disposal Normal Profit 2,000 1.500 $155 $210 40 55 $20 $35 S170 1 0 1648 Model A Copying Machine Replacement Toner Model B Copying Machine Replacement Toner 3,400...
QUESTION 9 Under the lower-of-cost-or-market basis in valuing inventory, market is defined as a. current replacement cost. b. selling price. C. historical cost plus 10%. d. selling price less markup.
Following information is related to Product X of Zempa Company: Current replacement cost $230 Cost to distribute $42 Historical cost $215 Normal profit margin $36 Selling price $245 If lower-of-cost-or-market rule (LCM Rule) is applied, then the value of Product X that would be reported in the balance sheet is: a. $215 b. $230 c. $203 d. $167
Cost Net realizable value Net realizable value less normal profit Market replacement cost 1 $6.90 9.15 8.15 7.00 2 $11.45 9.95 9.20 10.05 3 $11.65 13.30 11.20 13.60 4 $6.90 5.10 3.80 4.85 5 $8.05 6.95 6.25 4.50 Determine the proper unit inventory price in the above independent cases by applying the lower of cost or market rule. Case 1 s Case 2 Case 3 Case 4 Case 5
Cost Net realizable value Net realizable value less normal profit Market replacement cost 1 $7.60 9.05 8.50 7.70 2 $11.30 9.80 8.75 9.90 3 $11.65 12.40 11.00 12.70 4 $6.05 5.10 3.25 4.85 5 $7.60 6.90 5.80 4.50 Determine the proper unit inventory price in the above independent cases by applying the lower of cost or market rule. Case 1 $ Case 2 Case 3 Case 4 Case 5
Thank you !
The original cost of an item of inventory is above its replacement cost. The item's replacement cost is below its net realizable value but is higher than its net realizable value minus a normal profit. Under the lower of cost or market method, the inventory item should be valued at Multiple Choice Net realizable value Original cost Replacement cost Net realizable value less normal profit margin
PLEASE, INCLUDE ALL THE MATHEMATICAL PROCEDURE. THANKS!
HCH Corporation sells copying machines and replacement toners. HCH Corporation sells two models - Model A and Model B. HCH Corporation provided the following information regarding inventory at the end of the current year. Cost of Completion and Disposal Normal Profit Cost S35 170 Item Number of Replacement Selling Units Cost Price Price Model A Copying Machine 2,000 $155 S210 Replacement Toner 1.500 401 55 Model B Copying Machine 3.400 2 15 235...
Part Four: Problem (15 points) HCH Corporation sells copying machines and replacement toners. HCH Corporation sells two models - Model A and Model B. HCH Corporation provided the following information regarding inventory at the end of the current year. Item Cost Number of Units Replacement Selling Cost Price Cost of Completion and Disposal Normal Profit 2,000 1.500 $155 $210 40 55 $20 $35 S170 1 0 1648 Model A Copying Machine Replacement Toner Model B Copying Machine Replacement Toner 3,400...
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