3. (8 points) Smashing Pumpkins Company uses the lower-of-cost-or-market method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2014, consists of products D, E, F, G, H, and I. Relevant per-unit data for these products appear below. Item D Item E Item F Item G Item H Item I Estimated selling price $130 $100 $90 $85 $105 $80 Cost 70 80 60 80 45 32 Replacement cost 110 65 70 30 70 30 Estimated selling expense 25 25 20 20 25 25 Normal profit 20 20 20 20 20 20 Instructions Using the lower-of-cost-or-market rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2014, for each of the inventory items above.
Product | Cost | Replacement cost | NRV | NRV - NP | Market | Per unit Inventory value | |
Item D | $70.00 | $110.00 | $105.00 | $85.00 | $110.00 | $70.00 | |
Item E | $80.00 | $65.00 | $75.00 | $55.00 | $65.00 | $65.00 | |
Item F | $60.00 | $70.00 | $70.00 | $50.00 | $70.00 | $60.00 | |
Item G | $80.00 | $30.00 | $65.00 | $45.00 | $45.00 | $45.00 | |
Item H | $45.00 | $70.00 | $80.00 | $60.00 | $70.00 | $45.00 | |
Item I | $32.00 | $30.00 | $55.00 | $35.00 | $35.00 | $32.00 | |
NRV =[Selling price - Selling expenses] | |||||||
Market =Higher of (Replacement cost, NRV-NP) | |||||||
Per unit Inventory value =Lower of(Cost, Market) |
3. (8 points) Smashing Pumpkins Company uses the lower-of-cost-or-market method, on an individual-item basis, in pricing...
3. (8 points) Smashing Pumpkins Company uses the lower-of-cost-or-market method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2014, consists of products D, E, F, G, H, and I. Relevant per-unit data for these products appear below. Item D Item E Item F Item G Item H Item I Estimated selling price $130 $100 $90 $85 $105 $80 70 80 60 80 Cost 45 32 Replacement cost Estimated selling expense Normal profit 110 65...
(8 points) Smashing Pumpkins Company uses the lower-of-cost-or-market method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2014, consists of products D, E, F, G, H, and I. Relevant per-unit data for these products appear below. Item D Item E Item F Item G Item H Item I Estimated selling price $130 $100 $90 $85 $105 $80 Cost 70 80 60 80 45 32 Replacement cost 110 65 70 30 70 30 Estimated selling...
Riegel Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2020, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Estimated selling price Cost - Item D $120 75 30 10 Item E $110 80 30 18 Item F $95 80 25 10 Item G $90 30 35 20 Item H Item $110 $90 50 36 30 30 10 20...
Question 6 Riegel Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2020, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Item D $120 Estimated selling price Cost Cost to complete Selling costs Item E $110 80 30 75 30 Item F $95 80 25 10 Item G $90 80 35 20 Item H $110 50 30 10 Item...
Buffalo Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2017, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Exercise 9-2 Item D ItemE Item F Item G Item H Item I 149 $136 $118 $112 $136 $112 Estimated selling price 93 37 12 52 37 12 45 37 25 31 43 25 37 Cost to complete 12 Selling...
E9-2 (L01) (LCNRV) Riegel Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2017, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Item D $120 $110 $95 $90 $110 $90 80 80 50 Estimated selling price Cost Cost to complete Selling costs 35 30 18 30 10 Instructions Using the LCNRV rule, determine the proper unit value for balance...
Concord Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2020, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Item D Item E Item F Item G Item H Item I Estimated selling price $127 $117 $101 $95 $117 $95 Cost 80 85 85 85 53 38 Cost to complete 32 32 27 37 32 32 Selling costs 11...
Pharoah Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2017, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below Item D Item E Item F Item G $97 86 Item H Estimated selling price Cost Cost to complete Selling costs $130 81 32 $119 86 32 19 $103 86 27 Item I $97 39 32 $119S 54 32 Using...
Coronado Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2017, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Item D Item E Item F Item G Item H Item I Estimated selling price $133 $122 $105 $100 $122 $100 Cost 83 89 89 89 56 40 Cost to complete 33 33 28 39 33 33 Selling costs 11...
Marigold Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2020, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Item D $126 Item $116 Item F $100 Item G $95 Item H $116 Item I $95 Estimated selling price Cost Cost to complete Selling costs Using the LCNRV rule, determine the proper unit value for balance sheet reporting purposes...