1) As per prevalent accounting standards, net realizable value means selling price (less) cost to complete the sales:
Particulars | Pretentious | Decadent | Pookums | Bunny |
Selling Price applicable from sept. (a) | 860 | 800 | 600 | 260 |
(less) Sales commission and other selling costs (b) | 50 | 50 | 30 | 20 |
Net Realizable Value (c=a-b) | 810 | 750 | 570 | 240 |
LIFO costs (d) | 750 | 750 | 500 | 250 |
Inventory valuation per unit (e = lower of c or d) | 750 | 750 | 500 | 240 |
2) If the company uses FIFO method, FIFO cost of inventory would be determined as current cost to manufacture:
Particulars | Pretentious | Decadent | Pookums | Bunny |
Selling Price applicable from sept. (a) | 860 | 800 | 600 | 260 |
(less) Sales commission and other selling costs (b) | 50 | 50 | 30 | 20 |
Net Realizable Value (c=a-b) | 810 | 750 | 570 | 240 |
FIFO costs (d) | 710 | 680 | 400 | 260 |
Inventory valuation per unit (e = lower of c or d) | 710 | 680 | 400 | 240 |
That is how information was given om phone covers. Most of the company's phone covers 5....
5. Nugent Company manufactures custom phon company manufactures custom phone covers Most of the company's phone covers are sold on the basis of catalog prices. At December 31, 2018, the following phone covers appear in the company's inventory. Phone Cover Models Pretentious 2018 catalog selling price Decadent Pockums Bunny LIFO cost per inventory list $800 $780 $460 $250 Estimated current cost to manufacture 750 750 500 250 Sales commissions and estimated other 710 680 260 costs of disposal 2018 catalog...
5. Nugent Company manufactures custom phone covers. Most of the company's phone covers are sold on the basis of catalog prices. At December 31, 2018, the following phone covers appear in the company's inventory Phone Cover Models 2018 catalog selling price LIFO cost per inventory list Estimated current cost to manufacture Sales commissions and estimated other costs of disposal 2018 catalog selling price Pretentious $800 750 710 Decadent $780 750 680 Pookums $460 500 400 Bunny $250 250 260 50...
Concord Company manufactures desks. Most of the company’s desks are standard models and are sold on the basis of catalog prices. At December 31, 2017, the following finished desks (10 desks in each category) appear in the company’s inventory. Finished Desks A B C D 2017 catalog selling price $434 $473 $919 $1,048 FIFO cost per inventory list 12/31/17 475 451 830 954 Estimated cost to complete and sell 60 125 274 203 2018 catalog selling price 520 562 919...
Problem 9-1 Wildhorse Company manufactures desks. Most of the company’s desks are standard models and are sold on the basis of catalog prices. At December 31, 2017, the following finished desks (10 desks in each category) appear in the company’s inventory. Finished Desks A B C D 2017 catalog selling price $445 $493 $919 $1,043 FIFO cost per inventory list 12/31/17 487 474 830 951 Estimated cost to complete and sell 50 110 252 213 2018 catalog selling price 512...
Finished Desks A B C D 2020 catalog selling price $56 $60 $113 $131 FIFO cost per inventory list 12/31/20 59 56 104 120 Estimated cost to complete and sell 6 14 33 25 2021 catalog selling price 63 68 113 150 The 2020 catalog was in effect through November 2020, and the 2021 catalog is effective as of December 1; catalog prices are net of the usual discounts. At what amount should each of the four desks appear in...
kam III 5.In a period of rising prices, FIFO will have OOO 10 ibnsdora a. lower net income than LIFO. b. lower cost of goods sold than LIFO. c. lower income tax expense than LIFO. d. lower net purchases than LIFO. 16.The inventory turnover is computed by dividing cost of goods sold by a. beginning inventory. b. ending inventory. c. average inventory. d. 365 days. 17. Barley Company developed the following information about its inventories realizable value (LCNRV) basis in...
Grouper Wood Corporation manufactures desks. Most of the company’s desks are standard models that are sold at catalogue prices. At December 31, 2020, the following finished desks appear in the company’s inventory: Finished Desks Type A Type B Type C Type D 2020 catalogue selling price $460 $490 $890 $1,040 FIFO cost per inventory list, Dec. 31, 2020 440 440 860 860 Estimated current cost to manufacture (at Dec. 31, 2020, and early 2021) 460 440 790 1,000 Sales commissions...
The inventory of Royal Decking consisted of five products. Information about the December 31, 2018, inventory is as follows: Product Cost $ 230 270 150 210 130 Per Unit Selling Price $250 290 270 370 170 Costs to sell consist of a sales commission equal to 10% of selling price and shipping costs equal to 10% of cost. Required: What unit value should Royal Decking use for each of its products when applying the lower of cost or net realizable...
12.During July, the following purchases and sales were made Company uses a perpetual inventory system ses and sales were made by Phat Company. There was no beginning inventory. Phase July 3 11 20 Purchases 40 units 514 40 units $15 20 units $16 July 13 22 Sales 50 units 20 units Under the LIFO method, the cost of goods sold for each sale is: July 13 July 22 a b. c. d. $700 740 750 800 $280 320 300 320...
As of 12-31-15, Acme Company has three different inventory items on hand. Data on the three items follows tem Quantity Unit cost Replacement Normal rofit Expected Estima ted on hand (Acme uses LIFO 75 24 51 selling pricedisposal costs $1,500 $400 $1,000 cost $405 $310 $775 $625 $300 $800 $750 S230 $300 $100 $25 $250 Using the lower-of-cost-or-market approach applied on an individual-item basis, determine if Acme needs to make an entry to write her inventory down. If so, prepare...