Inventory Write-Down Stiles Corporation uses the FIFO cost flow assumption and is in the process of...
Inventory Write-Down
Stiles Corporation uses the FIFO cost flow assumption and is in the process of applying the LCNRV rule for each of two products in its ending inventory. A profit margin of 30% on the selling price is considered normal for each product. Specific data for each product are as follows:
| Product A | Product B | |
|---|---|---|
| Historical cost | $80 | $95 |
| Replacement cost | 71 | 99 |
| Estimated cost of disposal | 32 | 27 |
| Estimated selling price | 150 | 120 |
Required:
What is the correct inventory value for each product?
| Product A | $ |
| Product B | $ |
$ per unit
PLEASE explain.
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Inventory Write-Down
Stiles Corporation uses the FIFO cost flow assumption and is in
the process of...
Inventory Write-Down Stiles Corporation uses the FIFO cost flow assumption and is in the process of...
Inventory Write-Down Stiles Corporation uses the FIFO cost flow assumption and is in the process of applying the LCNRV rule for each of two products in its ending inventory. A profit margin of 30% on the selling price is considered normal for each product Specific data for each product are as follows: Product A Product B $81 $96 71 9 98 Historical cost Replacement cost Estimated cost of disposal Estimated selling price 32 25 150 120 Required: What is the...
Inventory Write-Down Stiles Corporation uses the FIFO cost flow assumption and is in the process of...
Inventory Write-Down Stiles Corporation uses the FIFO cost flow assumption and is in the process of applying the LCNRV rule for each of two products in its ending inventory. A profit margin of 30% on the selling price is considered normal for each product Specific data for each product are as follows: Historical cost Product A Product B $80 $96 Replacement cost 98 Estimated cost of disposal Estimated selling price 30 150 120 Required: What is the correct inventory value...
Inventory Write-Down Stiles Corporation uses the FIFO cost flow assumption and is in the process of...
Inventory Write-Down Stiles Corporation uses the FIFO cost flow assumption and is in the process of applying the LCNRV rule for each of two products in its ending inventory. A profit margin of 30% on the selling pric considered normal for each product Specific data for each product are as follows: Product A Product B Historical cost $80 $95 Replacement cost 31 Estimated cost of disposal Estimated selling price 150 Required: What is the correct inventory value for each product?...
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Inventory Write-Down Stiles Corporation uses the FIFO cost flow assumption and is in the process of applying the LCNRV rule for each of two products in its ending inventory. A profit margin of 30% on the selling price is considered normal for each product Specific data for each product are as follows: Product A Product B $81 $96 71 9 98 Historical cost Replacement cost Estimated cost of disposal Estimated selling price 32 25 150 120 Required: What is the...
Inventory Write-Down Stiles Corporation uses the FIFO cost flow assumption and is in the process of applying the LCNRV rule for each of two products in its ending inventory. A profit margin of 30% on the selling price is considered normal for each product Specific data for each product are as follows: Historical cost Product A Product B $80 $96 Replacement cost 98 Estimated cost of disposal Estimated selling price 30 150 120 Required: What is the correct inventory value...
Inventory Write-Down Stiles Corporation uses the FIFO cost flow assumption and is in the process of applying the LCNRV rule for each of two products in its ending inventory. A profit margin of 30% on the selling pric considered normal for each product Specific data for each product are as follows: Product A Product B Historical cost $80 $95 Replacement cost 31 Estimated cost of disposal Estimated selling price 150 Required: What is the correct inventory value for each product?...
Moore Corporation uses the com LO imp Ald ADA cation uses the FIFO cost flow method and has numerous units of two products ding inventory. Each is accounted for at the lower of cost or net realizable value under inting Standards Update (ASU) 2015-11. A profit margin of 30% on selling price is considered normal for each product. Specific data with respect to each product follows: Product 1 Product 2 Historical cost $ 17 $ 45 Replacement cost Estimated cost...
Mannisto Inc. uses the FIFO inventory cost flow assumption. In a year of rising costs and prices, the firm reported net income of $217,775 and average assets of $1,463,010. If Mannisto had used the LIFO cost flow assumption in the same year, its cost of goods sold would have been $39,290 more than under FIFO, and its average assets would have been $42,760 less than under FIFO. Required: a. Calculate the firm's ROI under each cost flow assumption (FIFO and...
Mannisto Inc. uses the FIFO inventory cost flow assumption. In a year of rising costs and prices, the firm reported net income of $211,098 and average assets of $1,421,970. If Mannisto had used the LIFO cost flow assumption in the same year, its cost of goods sold would have been $38,280 more than under FIFO, and its average assets would have been $45,000 less than under FIFO. Required: a. Calculate the firm's ROI under each cost flow assumption (FIFO and...
Mannisto Inc. uses the FIFO Inventory cost flow assumption. In a year of rising costs and prices, the firm reported net income of $200,246 and average assets of $1,465,400. If Mannisto had used the LIFO cost flow assumption in the same year, its cost of goods sold would have been $42.030 more than under FIFO, and its average assets would have been $39,520 less than under FIFO. Required: a. Calculate the firm's ROI under each cost flow assumption (FIFO and...
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