Homework Answers
Requirement (a)
| Valuation of Inventory | ||||
| Inventory Category | Cost | Market Value | Lower | |
| Equipment | 18000 | 17700 | 17700 | Market Value |
| Truck | 14000 | 14600 | 14000 | Cost |
| Computer | 21000 | 19500 | 19500 | Market Value |
| Total Inventory | 51200 | |||
Requirement (b)
Conservatism Constraint
Requirement (c)
Definition of Conservatism Constraint: "It refers to an accounting
constraint that states- when in doubt, report information that does
not overstate income or assets or does not understate expenses or
liabilities."
Therefore, the accountant considers the most conservative value, or
in simple terms the most moderate value or the most real value of
the particular item. This practice ensures that the financial
statements show the real state of affairs and are not
misleading.
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Instructions Lower of Cost or Market Valuations for the Howe Company inventory based of...
please help thats all the informatoin given Instructions a.) Compute the Lower of Cost or Market...
please help
thats all the informatoin given
Instructions a.) Compute the Lower of Cost or Market che lower of Cost or Market Valuations for the Howe Company tory based of the following. Show all work to arrive at your answer Cost Data Market Data Inventory Categories $18,000 $17,700 Equipment $14,000 $14,600 Truck $21,000 $19,500 Computers b.) By applying Lower of Cost or Market Valuation to Inventory, the preparer of the Financial Statement would be applying the Constraint of: c.) Explain...
Question 2: (10 Points): Intructions: a.) Compute the Lower of Cost or M e the Lower...
Question 2: (10 Points): Intructions: a.) Compute the Lower of Cost or M e the Lower of Cost or Market Valuations for the Howe Company's total inventory based of the following. Show all work to arrive at your answer Inventory Categories Cost Data Market Data Equipment $18,000 $17,700 Truck S14,000 $14,600 Computers $21,000 $19,500 b.) By applying Lower of Cost or Market Valuation to Inventory, the preparer of the Financial Statement would be applying the Constraint of: c.) Explain the...
2. Compute the lower-of-cost-or-net realizable value valuation for Aber Company's total inventory based on the following:...
2. Compute the lower-of-cost-or-net realizable value valuation for Aber Company's total inventory based on the following: (3%) Inventory Categories Cost Data Net Realizable Value Data $18,000 $17,600 14,000 14,600 21,000 20,500
BE6–13 Smart-Tech Office Equipment Company has the following cost and net realizable value data at December 31, 2014:
BE6–13 Smart-Tech Office Equipment Company has the following cost and net realizable value data at December 31, 2014:Inventory Categories Cost Net Realizable ValueComputers $24,000 $21,500 Office Equipment 19,000 19,500 Printers 14,000 10,600(a) Calculate the lower of cost and net realizable value valuation. (b) What adjustment should the company record if it uses a perpetual inventory system?
The controller of Greene Yard Company is applying the lower-of-cost-or-net realizable basis of valuing its ending...
The controller of Greene Yard Company is applying the lower-of-cost-or-net realizable basis of valuing its ending inventory. The following information is available Market Value Cost Lawnmowers: Self-propelled $16,800 $17,000 Push type Total 19,500 36,300 18,000 35,000 Snowblowers: Manual Self-start Total 30,000 21,000 51,000 $85,800 $86,000 29,800 19,700 49,500 Total inventory Compute the value of the ending inventory by applying the lower-of-cost-or-net realizable basis Total ending inventory
Lower of Cost or Market General Journal Instructions Chart of Accounts Next Level Instructions The inventories of Berr...
Lower of Cost or Market General Journal Instructions Chart of Accounts Next Level Instructions The inventories of Berry Company for the years 2016 and 2017 are as follows: Cost Market January 1, 2016 $10,000 $10,000 December 31, 2016 13,000 11,500 December 31, 2017 16,000 14,000 Berry uses a perpetual inventory system. Required: 1. Assume the inventory that existed at the end of 2016 was sold in 2017. Prepare the necessary journal entries at the end of each year to record...
Wildhorse Co. accumulates the following cost and market data at December 31. Inventory Categories Cost Data...
Wildhorse Co. accumulates the following cost and market data at December 31. Inventory Categories Cost Data Market Data Cameras $10,871 $11,951 Camcorders 8,628 9,488 DVDs 10,960 9,660 Compute the lower-of-cost-or-market valuation for company’s inventory. The lower-of-cost-or-market value $
Lower-of-Cost-or-Market Method On the basis of the following data, determine the value of the inventory at...
Lower-of-Cost-or-Market Method On the basis of the following data, determine the value of the inventory at the lower-of-cost-or-market by applying lower-of-cost-or-market to each inventory Item, as shown in Exhibit 10. TtemInventory QuantityCost per UnitMarket Value per Unit(Net Realizable Value)JFW199$23$21SAW92071217
I need help figuring out how to find the ending inventory using the lower-of-cost-or-market method: Lower-of-Cost-or-Net...
I need help figuring out how to find the ending inventory using
the lower-of-cost-or-market method:
Lower-of-Cost-or-Net Realizable Value Method The following data are taken from the Simpson Corporation's inventory accounts: Net Item Unit Realizable Code Quantity Cost Value Product 1 ZKE 150 $72 ZKF 350 83 Product 2 MNJ 450 72 MNS 250 83 87 Calculate the value of the company's ending inventory using the lower-of-cost-or-market method applied to each item of inventory. Applying the lower-of-cost-or-market method to each item...
On the basis of the following data, determine the value of the inventory at the lower-of-cost-or-market...
On the basis of the following data, determine the value of the inventory at the lower-of-cost-or-market by applying lower-of-cost-or-market to each inventory item, as shown in Exhibit 10. ItemInventory QuantityCost per UnitMarket Value per Unit (Net Realizable Value) JFW1 90$50$55 SAW9183 26 22
please help
thats all the informatoin given
Instructions a.) Compute the Lower of Cost or Market che lower of Cost or Market Valuations for the Howe Company tory based of the following. Show all work to arrive at your answer Cost Data Market Data Inventory Categories $18,000 $17,700 Equipment $14,000 $14,600 Truck $21,000 $19,500 Computers b.) By applying Lower of Cost or Market Valuation to Inventory, the preparer of the Financial Statement would be applying the Constraint of: c.) Explain...
Question 2: (10 Points): Intructions: a.) Compute the Lower of Cost or M e the Lower of Cost or Market Valuations for the Howe Company's total inventory based of the following. Show all work to arrive at your answer Inventory Categories Cost Data Market Data Equipment $18,000 $17,700 Truck S14,000 $14,600 Computers $21,000 $19,500 b.) By applying Lower of Cost or Market Valuation to Inventory, the preparer of the Financial Statement would be applying the Constraint of: c.) Explain the...
2. Compute the lower-of-cost-or-net realizable value valuation for Aber Company's total inventory based on the following: (3%) Inventory Categories Cost Data Net Realizable Value Data $18,000 $17,600 14,000 14,600 21,000 20,500
The controller of Greene Yard Company is applying the lower-of-cost-or-net realizable basis of valuing its ending inventory. The following information is available Market Value Cost Lawnmowers: Self-propelled $16,800 $17,000 Push type Total 19,500 36,300 18,000 35,000 Snowblowers: Manual Self-start Total 30,000 21,000 51,000 $85,800 $86,000 29,800 19,700 49,500 Total inventory Compute the value of the ending inventory by applying the lower-of-cost-or-net realizable basis Total ending inventory
Lower of Cost or Market General Journal Instructions Chart of Accounts Next Level Instructions The inventories of Berry Company for the years 2016 and 2017 are as follows: Cost Market January 1, 2016 $10,000 $10,000 December 31, 2016 13,000 11,500 December 31, 2017 16,000 14,000 Berry uses a perpetual inventory system. Required: 1. Assume the inventory that existed at the end of 2016 was sold in 2017. Prepare the necessary journal entries at the end of each year to record...
I need help figuring out how to find the ending inventory using
the lower-of-cost-or-market method:
Lower-of-Cost-or-Net Realizable Value Method The following data are taken from the Simpson Corporation's inventory accounts: Net Item Unit Realizable Code Quantity Cost Value Product 1 ZKE 150 $72 ZKF 350 83 Product 2 MNJ 450 72 MNS 250 83 87 Calculate the value of the company's ending inventory using the lower-of-cost-or-market method applied to each item of inventory. Applying the lower-of-cost-or-market method to each item...
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