How does the retail inventory method establish the lower-of-cost-or-market valuation for ending inventory? 1. The procedure...
How does the retail inventory method establish the lower-of-cost-or-market valuation for ending inventory?
1. The procedure is applied on a cost basis at the unit level.
2. By excluding net markups from the cost-to-retail ratio.
3. By excluding beginning inventory from the cost-to-retail ratio.
4. By excluding net markdowns from the cost-to-retail ratio.
The original cost of an inventory item is above the replacement cost and below the net realizable value. The net realizable value less the normal profit margin is above the replacement cost and the original cost. Using the lower of cost or market method the inventory item should be priced at its
1.Original cost.
2. Replacement cost.
3. Net realizable value.
4. Net realizable value less the normal profit margin.
BJ's stocks a changing variety of products. Which inventory costing method will be most likely to give Bj's the lowest ending inventory when its product lines are subject to specific price increases?
1.Specific identification.
2. Weighted-average.
3.Dollar-value LIFO.
4. FIFO periodic.
If ending inventory for 20x5 is understated because certain items were missed in the count, then:
1. Net income for 20x5 will be overstated.
2. CGS for 20x5 will be understated.
3.Net income for 20x5 will be understated, but net income for 20x6 will be unaffected.
4. Net income for 20x5 will be understated and CGS for 20x6 will be understated.
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How does the retail inventory method establish the
lower-of-cost-or-market valuation for ending inventory?
1. The procedure...
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...
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
77) Given the following data: Ending inventory at cost $24,000 Ending inventory at current net realizable...
77) Given the following data: Ending inventory at cost $24,000 Ending inventory at current net realizable value 23,600 Cost of goods sold (before consideration of the lower-of-cost-and-net-realizable-value rule) 37,000 Which of the following depicts the proper account balance after the application of the lower-of-cost-and-net realizable value rule? A) Cost of goods sold will be $37,400. B) Cost of goods sold will be $36,400. C) Cost of goods sold will be $37,000. D) Ending inventory will be $24,000. 78) Inventory at...
Lower-of-Cost-or-Net Realizable Value Method The following data are taken from the Daisy Corporation's inventory accounts: Net...
Lower-of-Cost-or-Net Realizable Value Method The following data are taken from the Daisy Corporation's inventory accounts: Net Unit Realizable Quantity Cost Value Item Code Product 1 ZKE ZKF Product 2 MNJ MNS $18 100 300 $22 31 36 400 250 22 31 19 37 Calculate the value of the company's ending inventory using the lower-of-cost-or-net realizable method applied to each item of inventory. Applying the lower-of-cost-or-net realizable value method to each item of the inventory results in an ending inventory amount...
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?
QUESTION 1. Prepare the income statement to reflect lower of cost or net realizable value valuation...
QUESTION
1. Prepare the income statement to reflect
lower of cost or net realizable value valuation of the current year
ending inventory. Apply lower of cost or NRV on an item-by-item
basis. (Round your answers to nearest dollar
amount.)
2. Compare the lower of cost or net realizable
value effect on each amount that was changed on the income
statement in requirement (1). (Decreases should be
indicated by a minus sign.)(Round your answers to nearest dollar
amount.)
Jaffa Company prepared...
Lower-of-Cost-or-Net Realizable Value Method The following data are taken from the Smith & Wesson Corporation's inventory...
Lower-of-Cost-or-Net Realizable Value Method The following data are taken from the Smith & Wesson Corporation's inventory accounts: Net Item Unit Realizable Code Quantity Cost Value ZKE 100 5102 $100 300 113 MN 400 102 UBS 200 113 117 100 Calculate the value of the company's ending inventory using the lower of cost and net realizable value method applied to each item of inventory. Ending Inventory Values 107,500 Check
Retail Inventory Method Harmes Company is a clothing store that uses the retail inventory method. The...
Retail Inventory Method Harmes Company is a clothing store that uses the retail inventory method. The following information relates to its operations during the year: Cost Retail Inventory, January 1 Purchases $28,400 $40,200 $5,200 100,000 1,900 Markups (net) Markdowns (net) 400 Sales 80,000 Required: 1. Compute the ending inventory by the retail inventory method for the following cost flow assumption: FIFO. Round the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar. HARMES...
Lower-of-Cost-or-Market Method On the basis of the data shown below: Inventory Quantity Cost per Unit Market...
Lower-of-Cost-or-Market Method On the basis of the data shown below: Inventory Quantity Cost per Unit Market Value per Unit (Net Realizable Value) Item A13Y 81 $23 $18 O5T4 164 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 9. EXHIBIT E F G Determining Inventory at Lower of Cost or Market LCM) A. Bo Market Value Inventory Cost per per Unit...
The following information concerns four items that Modern Woman Clothiers has in its ending inventory on...
The following information concerns four items that Modern Woman Clothiers has in its ending inventory on December 31. Two of these items are in the accessories department, and two are in the women CEO department Realizable value Quantity Unit Cost 249 $28 $31 159 Accessories Item 620 Item 621 Women CEO Item 726 Item 727 199 101 139 1. What is the valuation of ending inventory if the firm uses the lower of cost or net realizable value method and...
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...
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
Lower-of-Cost-or-Net Realizable Value Method The following data are taken from the Daisy Corporation's inventory accounts: Net Unit Realizable Quantity Cost Value Item Code Product 1 ZKE ZKF Product 2 MNJ MNS $18 100 300 $22 31 36 400 250 22 31 19 37 Calculate the value of the company's ending inventory using the lower-of-cost-or-net realizable method applied to each item of inventory. Applying the lower-of-cost-or-net realizable value method to each item of the inventory results in an ending inventory amount...
QUESTION
1. Prepare the income statement to reflect
lower of cost or net realizable value valuation of the current year
ending inventory. Apply lower of cost or NRV on an item-by-item
basis. (Round your answers to nearest dollar
amount.)
2. Compare the lower of cost or net realizable
value effect on each amount that was changed on the income
statement in requirement (1). (Decreases should be
indicated by a minus sign.)(Round your answers to nearest dollar
amount.)
Jaffa Company prepared...
Lower-of-Cost-or-Net Realizable Value Method The following data are taken from the Smith & Wesson Corporation's inventory accounts: Net Item Unit Realizable Code Quantity Cost Value ZKE 100 5102 $100 300 113 MN 400 102 UBS 200 113 117 100 Calculate the value of the company's ending inventory using the lower of cost and net realizable value method applied to each item of inventory. Ending Inventory Values 107,500 Check
Retail Inventory Method Harmes Company is a clothing store that uses the retail inventory method. The following information relates to its operations during the year: Cost Retail Inventory, January 1 Purchases $28,400 $40,200 $5,200 100,000 1,900 Markups (net) Markdowns (net) 400 Sales 80,000 Required: 1. Compute the ending inventory by the retail inventory method for the following cost flow assumption: FIFO. Round the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar. HARMES...
Lower-of-Cost-or-Market Method On the basis of the data shown below: Inventory Quantity Cost per Unit Market Value per Unit (Net Realizable Value) Item A13Y 81 $23 $18 O5T4 164 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 9. EXHIBIT E F G Determining Inventory at Lower of Cost or Market LCM) A. Bo Market Value Inventory Cost per per Unit...
The following information concerns four items that Modern Woman Clothiers has in its ending inventory on December 31. Two of these items are in the accessories department, and two are in the women CEO department Realizable value Quantity Unit Cost 249 $28 $31 159 Accessories Item 620 Item 621 Women CEO Item 726 Item 727 199 101 139 1. What is the valuation of ending inventory if the firm uses the lower of cost or net realizable value method and...
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