Question

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Brief Exercise 9-4 Your answer is partially correct. Try again. Presented below is information related to Blue Inc.'s inventory, assuming Blue uses lower-of-LIFO cost-or-market. (per unit) $247.00 $137.80 $68.90 275.60 188.50 95.88 3.25 263.90 136.50 66.30 37.70 27.63 cost Selling price Cost to distribute Current replacement cost Normal profit margin 24.70 10.40 41.60 Determine the following: (a) The two limits to market value (i.e., the ceiling and the floor) that should be used in the et computation for skis. Ceiling Limit 250.90 Floor Limit 209.3 (b) The cost amount that should be used in the lower-of-cost-or-market comparison of boots The cost amount 137.80 (c) The market amount that should be used to value parkas on the basis of the All Rights Reserved. A Division of

Answer 1

Net realizable value (ceiling) =68.9-3.25	65.65
Net realizable value normal profit margin =65.65-27.63	38.02
Current replacement cost	66.30
Designated market value	38.02
(c) the market amount that should be used to value parkas on the basis of the lower-of-cost-or-market. The market amount : $38.02

Solution for part:C is provided above.Please comment if you have any doubts or queries