The lower-of-cost-or-market rule may be applied by comparing the market value of the inventory to the...
The lower-of-cost-or-market rule may be applied by comparing the market value of the inventory to the cost of the inventory based on any of the following except: Select one: a. Individual inventory items. b. Major inventory categories. c. The entire inventory. d. Industry inventory standards.
Homework Answers
Correct answer----------d. Industry inventory standards..
.
Lower of cost or market value is applied to inventory for valuation of inventory. The rule can be applied on entire inventory total or on individual item of inventory or on one or more categories of inventory such as music instruments, home appliances etc.
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The lower-of-cost-or-market rule may be applied by comparing the
market value of the inventory to the...
Exercise 5-11A Lower-of-cost-or-market rule LO 5-2 Brooks Company carries three inventory items. The following information pertains...
Exercise 5-11A Lower-of-cost-or-market rule LO 5-2 Brooks Company carries three inventory items. The following information pertains to the ending Inventory Cort Market Value Required a. Determine the ending Inventory that Brooks will report on the balance sheet, assuming that it applies the lower-of-cost-or-market rule to individual Inventory Items Ending inventory b. Prepare the necessary journal entry, assuming the decline in value was immaterial. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account...
Lower of Cost or Market Palmquist Company has five different inventory items that it values by th...
Lower of Cost or Market Palmquist Company has five different inventory items that it values by the lower of cost or market rule applied on an individual item basis. The normal markup on all items is 20% of cost. The following information is obtained from the company’s records: Item Units Cost Replacement Cost Net Realizable Value 1 500 $10.00 $ 9.10 $ 9.20 2 400 8.00 8.10 7.80 3 300 15.00 13.50 14.00 4 200 18.00 12.00 17.00 5 100...
Exercise 5-10A Lower-of-cost-or-market rule: perpetual system LO 5-2 The following information pertains to Hagen Metal Work’s...
Exercise 5-10A Lower-of-cost-or-market rule: perpetual system LO 5-2 The following information pertains to Hagen Metal Work’s ending inventory for the current year: Unit Unit Item Quantity Cost Market Value C 290 $ 10 $ 6 D 280 12 9 K 76 8 12 M 71 5 8 Required a. Determine the value of the ending inventory using the lower-of-cost-or-market rule applied to (1) each individual inventory item and (2) the inventory in aggregate. b. Prepare any necessary journal entries,...
Berthoducation.com Chp 5-Assignment 2 Help Se 1 Problem 5-21A Inventory valuation based on the lower-of-cost-or-market rule...
Berthoducation.com Chp 5-Assignment 2 Help Se 1 Problem 5-21A Inventory valuation based on the lower-of-cost-or-market rule LO 5-2 At the end of the year, Randy's Parts Co. had the following items in ms in Inventory Unit Market Item PI 72 Quantity is out 40 70 10 70 125 72 130 130 Required a. Determine the amount of ending inventory using the lower-of-cost-op-market rule applied to each individual inventory item. b. Provide the general journal entry necessary to write down the...
Lower-of-Cost-or-Market Inventory On the basis of the following data, determine the value of the inventory at...
Lower-of-Cost-or-Market Inventory On the basis of the following data, determine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in Exhibit 10. Product Inventory Quantity Cost Per Unit Market Value per Unit (Net Realizable Value) Class 1: Model A 19$115 $112 Model B 39 142 138 Model C 39294 305 Class 2: Model D 8 260 246 Model E 28 170 176 a. Determine the value of the inventory at the lower...
Problem 9-3 (Algo) Lower of cost or market; by product and by total inventory (LO9-1] Forester...
Problem 9-3 (Algo) Lower of cost or market; by product and by total inventory (LO9-1] Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Product A Unit Cost $ 30 35 23 27 Quantity 600 1,000 900 800 700 Unit Replacement Cost $32 31 22 24 32 Unit Selling Price $36 38 28 26 33 B с D E 34 The cost to sell for each product consists of a 10 percent sales...
Problem 9-3 Lower of cost or market [LO9-1 Forester Company has five products in its inventory. I...
Problem 9-3 Lower of cost or market [LO9-1 Forester Company has five products in its inventory. Information about the December 31, 2018, inventory follows. Unit Unit Unit Replaceent Selling Product Quantity Cost s 17 Cost $19 Price $23 25 1,000 700 1,000 900 600 18 10 14 21 15 13 19 20 The cost to sell for each product consists of a 15 percent sales commission. The normal profit percentage for each product is 40 percent of the selling price...
Given the following data, what is the cost of the inventory using the lower-of-cost-or-market method applied...
Given the following data, what is the cost of the inventory using the lower-of-cost-or-market method applied to individual items? Item Quantity Unit Cost Unit Market Price 200 $4.40 $4.10 2 800 $3.30 $3.50 200 $7.20 $7.30 1,000 $2.00 $2.26 O $7,340 O $6,960 O $7,280 $6,900
Del The Twinkster Company has six different categories of inventory. Ouantity, cost, market value for each...
Del The Twinkster Company has six different categories of inventory. Ouantity, cost, market value for each inventory category is shown below: $6.25 Item Quantity Cost Per Unit Market Value Per Unit 750 $6.30 800 $8.45 $10.00 545 $13.00 $11.50 325 $32.45 $30.00 125 $50.75 $52.60 25 $65.00 $70.00 The company carries inventory at lower-of-cost-or-market applied to each individual category. Required: (a) Determined the value of ending inventory after applying the lower-of-cost-or-market rule (b) Prepare the journal entry required to adjust...
Alejandro Limited is a public company that uses the lower-of-cost or ne realizable value (NRV) rule...
Alejandro Limited is a public company that uses the lower-of-cost or ne realizable value (NRV) rule under the allowance method for reporting inventory on its Statement of Financial Position using the. The company also uses a perpetual inventory control system. At the end of 2018, Alejandro Inc. had four items in its inventory (not living animals), two o which management believed should be written down. The cost and NRV of the items are as follows: Item A Quantity Cost 170...
Exercise 5-11A Lower-of-cost-or-market rule LO 5-2 Brooks Company carries three inventory items. The following information pertains to the ending Inventory Cort Market Value Required a. Determine the ending Inventory that Brooks will report on the balance sheet, assuming that it applies the lower-of-cost-or-market rule to individual Inventory Items Ending inventory b. Prepare the necessary journal entry, assuming the decline in value was immaterial. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account...
Berthoducation.com Chp 5-Assignment 2 Help Se 1 Problem 5-21A Inventory valuation based on the lower-of-cost-or-market rule LO 5-2 At the end of the year, Randy's Parts Co. had the following items in ms in Inventory Unit Market Item PI 72 Quantity is out 40 70 10 70 125 72 130 130 Required a. Determine the amount of ending inventory using the lower-of-cost-op-market rule applied to each individual inventory item. b. Provide the general journal entry necessary to write down the...
Problem 9-3 (Algo) Lower of cost or market; by product and by total inventory (LO9-1] Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Product A Unit Cost $ 30 35 23 27 Quantity 600 1,000 900 800 700 Unit Replacement Cost $32 31 22 24 32 Unit Selling Price $36 38 28 26 33 B с D E 34 The cost to sell for each product consists of a 10 percent sales...
Problem 9-3 Lower of cost or market [LO9-1 Forester Company has five products in its inventory. Information about the December 31, 2018, inventory follows. Unit Unit Unit Replaceent Selling Product Quantity Cost s 17 Cost $19 Price $23 25 1,000 700 1,000 900 600 18 10 14 21 15 13 19 20 The cost to sell for each product consists of a 15 percent sales commission. The normal profit percentage for each product is 40 percent of the selling price...
Given the following data, what is the cost of the inventory using the lower-of-cost-or-market method applied to individual items? Item Quantity Unit Cost Unit Market Price 200 $4.40 $4.10 2 800 $3.30 $3.50 200 $7.20 $7.30 1,000 $2.00 $2.26 O $7,340 O $6,960 O $7,280 $6,900
Del The Twinkster Company has six different categories of inventory. Ouantity, cost, market value for each inventory category is shown below: $6.25 Item Quantity Cost Per Unit Market Value Per Unit 750 $6.30 800 $8.45 $10.00 545 $13.00 $11.50 325 $32.45 $30.00 125 $50.75 $52.60 25 $65.00 $70.00 The company carries inventory at lower-of-cost-or-market applied to each individual category. Required: (a) Determined the value of ending inventory after applying the lower-of-cost-or-market rule (b) Prepare the journal entry required to adjust...
Alejandro Limited is a public company that uses the lower-of-cost or ne realizable value (NRV) rule under the allowance method for reporting inventory on its Statement of Financial Position using the. The company also uses a perpetual inventory control system. At the end of 2018, Alejandro Inc. had four items in its inventory (not living animals), two o which management believed should be written down. The cost and NRV of the items are as follows: Item A Quantity Cost 170...
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