Valuing Inventory at Lower-of-Cost-or-Market Gard Inc. has compiled the following information related to its five products....
Metlock Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company's inventory records as of December 31, 2020. Item Quantity 1,600 1,300 1,500 1,500 1,900 Unit Cost $8.33 9.10 6.22 4.22 7.10 Replacement Cost/Unit $9.32 8.77 5.99 4.66 6.99 Estimated Selling Price/Unit $11.66 10.43 7.99 6.99 7.44 Completion & Disposal Cost/Unit $1.67 1.00 1.28 Normal Profit Margin/Unit $2.00 1.33 0.67 1.67 1.11 0.89 0.78 Greg Forda is an accounting clerk in...
Ivanhoe Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company’s inventory records as of December 31, 2017. Item Quantity Unit Cost Replacement Cost/Unit Estimated Selling Price/Unit Completion & Disposal Cost/Unit Normal Profit Margin/Unit A 1,900 $9.23 $10.33 $12.92 $1.85 $2.21 B 1,600 10.09 9.72 11.56 1.11 1.48 C 1,800 6.89 6.64 8.86 1.41 0.74 D 1,800 4.67 5.17 7.75 0.98 1.85 E 2,200 7.87 7.75 8.24 0.86 1.23 Greg Forda...
Metlock Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company's inventory records as of December 31, 2020. Normal Profit Margin/Unit Item Unit Cost $8.33 9.10 6.22 Quantity 1,600 1,300 1,500 1,500 1,900 $2.00 Replacement Cost/Unit $9.32 8.77 5.99 4.66 6.99 Estimated Selling Price/Unit $11.66 10.43 7.99 6.99 7.44 Completion & Disposal Cost/Unit $1.67 1.00 1.28 0.89 0.78 1.33 4.22 0.67 1.67 1.11 7.10 Greg Forda is an accounting clerk in...
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.
Problem 9-5 Waterway Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company’s inventory records as of December 31, 2017. Item Quantity Unit Cost Replacement Cost/Unit Estimated Selling Price/Unit Completion & Disposal Cost/Unit Normal Profit Margin/Unit A 1,300 $8.78 $9.83 $12.29 $1.76 $2.11 B 1,000 9.59 9.24 11.00 1.05 1.40 C 1,200 6.55 6.32 8.42 1.35 0.70 D 1,200 4.45 4.91 7.37 0.94 1.76 E 1,600 7.49 7.37 7.84 0.82 1.17...
Problem 9-5 Pearl Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company’s inventory records as of December 31, 2017. Item Quantity Unit Cost Replacement Cost/Unit Estimated Selling Price/Unit Completion & Disposal Cost/Unit Normal Profit Margin/Unit A 1,800 $8.18 $9.16 $11.45 $1.64 $1.96 B 1,500 8.94 8.61 10.25 0.98 1.31 C 1,700 6.10 5.89 7.85 1.25 0.65 D 1,700 4.14 4.58 6.87 0.87 1.64 E 2,100 6.98 6.87 7.30 0.76 1.09...
Question 2 Swifty Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company’s inventory records as of December 31, 2020. Item Quantity Unit Cost Replacement Cost/Unit Estimated Selling Price/Unit Completion & Disposal Cost/Unit Normal Profit Margin/Unit A 1,200 $8.70 $9.74 $12.18 $1.74 $2.09 B 900 9.51 9.16 10.90 1.04 1.39 C 1,100 6.50 6.26 8.35 1.33 0.70 D 1,100 4.41 4.87 7.31 0.93 1.74 E 1,500 7.42 7.31 7.77 0.81 1.16...
Sheridan Distribution Co. has determined its December 31, 2020 inventory on a LIFO basis at $917000. Information pertaining to that inventory follows: $950000 Estimated selling price 33000 Estimated cost of disposal 113000 Normal profit margin 837000 Current replacement cost Sheridan records losses that result from applying the lower-of-cost-or-market rule. At December 31, 2020, the loss that Sheridan should recognize is $0. O$80000 $113000. $33000
Cullumber Distribution Co. has determined its December 31, 2017 inventory on a LIFO basis at $989000. Information pertaining to that inventory follows: Estimated selling price $1030000 Estimated cost of disposal 41000 Normal profit margin 121000 Current replacement cost 909000 Cullumber records losses that result from applying the lower-of-cost-or-market rule. At December 31, 2017, the loss that Cullumber should recognize is $80000. $0. $42000. $122000.
Teel Distribution Co. LCM Question Where I am confused is that when following LCM, the market value should be the replacement cost, at 225, given that it is the middle-value between the ceiling and floor of 245 and 215 respectively. With that in mind, the loss should be reflected as 25 (250 cost - 225 LCM); what am I missing here? Please explain in detail for rating. 1. Teel Distribution Co. has determined its December 31, 2007 inventory on a...