Homework Answers
Answer for Problem no:1
Inventory are valued cost or Net realisable Value(NRV) whichever is lower at Reporting date.
1.Valuation of inventory using individual item approach
| Item | Cost | Market price |
Inventory to be valued Lower of cost or Market price |
| Cattle | $400000 | $380000 | $380000 |
| Horse | $875000 | $920000 | $875000 |
| Cat | $550000 | $700000 | $550000 |
| Dog | $90000 | $165000 | $90000 |
| Ferret | $280000 | $240000 | $240000 |
| Total | $2195000 | $2405000 | $2135000 |
2.Valuation of inventory using Groub by group approach
| Groub | Cost | Market price |
Inventory to be valued Lower of cost or Market price |
|
Large Animal (Cattle &Horse) |
$1275000 ($400000+$875000) |
$1300000 ($380000+$920000) |
$1275000 |
|
Small animal (Cat,Dog & ferret) |
$920000 ($550000+$90000+$280000) |
$1105000 ($700000+$165000+$240000) |
$920000 |
| Total | $2195000 | $2405000 | $2195000 |
3. Valuation of inventory using Total inventory approach
Total cost price of inventory. =$2195000
Total Market price of inventory=$2405000
so value of inventory lower of above is $2195000
Note:total cost price and Market price of inventory already calculated in point 1 and 2 also
(Please repost problem no.2 because we allow to answer to one question with limited time )
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Problem 1: Perez Animal Feeds has developed the following data for lower-of-cost-or-market valuation for its inventory...
Problem 1: Perez Animal Feeds has developed the following data for lower-of-cost-or-market valuation for its inventory...
Problem 1: Perez Animal Feeds has developed the following data for lower-of-cost-or-market valuation for its inventory products: Cost Market $400,000 875.000 $380,000 920,000 Large Animals: Cattle Horse Small Animals: Cat Dog Ferret 550.000 90,000 280,000 700,000 165,000 245,000 Required: Determine the amount of inventory to appear in the balance sheet assuming LCM applied to: 1. Individual item approach 2. Group by group approach 3. Total inventory approach. Problem 2: The accounting records of Redman Sporting Goods Inc., a wholesaler of...
1, and the controller of Martin Corporation is applying the lower-of-cost-or-market (LCM) e following data: Data...
1, and the controller of Martin Corporation is applying the lower-of-cost-or-market (LCM) e following data: Data Table $ 380,000 Cost of goods sold Historical cost of ending inventory, as determined by a physical count 58,000 Print Done y number in the input fields and then click Check Answer. Clear All Assignments S6-10 (similar to) Question Help It is December 31, the end of the year, and the controller of Martin Corporation is applying the lower-of-cost-or-market (LCM) rule to inventories. Before...
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...
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 ilustrated in Exhibit 9. Inventory Cost per Inventory Quantity Market Value per Unit (Net Realizable Value) Item Unit Birch $173 $148 Cypress 202 Mountain Ash 189 278 155 299 Spruce Willow 221 Inventory at the Lower of Cost or Market Inventory Item Total Cost Total Market Total Lower of Cor Birch Cypress...
Problem 9-5 Waterway Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following...
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...
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...
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...
Problem 1: Perez Animal Feeds has developed the following data for lower-of-cost-or-market valuation for its inventory products: Cost Market $400,000 875.000 $380,000 920,000 Large Animals: Cattle Horse Small Animals: Cat Dog Ferret 550.000 90,000 280,000 700,000 165,000 245,000 Required: Determine the amount of inventory to appear in the balance sheet assuming LCM applied to: 1. Individual item approach 2. Group by group approach 3. Total inventory approach. Problem 2: The accounting records of Redman Sporting Goods Inc., a wholesaler of...
1, and the controller of Martin Corporation is applying the lower-of-cost-or-market (LCM) e following data: Data Table $ 380,000 Cost of goods sold Historical cost of ending inventory, as determined by a physical count 58,000 Print Done y number in the input fields and then click Check Answer. Clear All Assignments S6-10 (similar to) Question Help It is December 31, the end of the year, and the controller of Martin Corporation is applying the lower-of-cost-or-market (LCM) rule to inventories. Before...
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...
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 ilustrated in Exhibit 9. Inventory Cost per Inventory Quantity Market Value per Unit (Net Realizable Value) Item Unit Birch $173 $148 Cypress 202 Mountain Ash 189 278 155 299 Spruce Willow 221 Inventory at the Lower of Cost or Market Inventory Item Total Cost Total Market Total Lower of Cor Birch Cypress...
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...
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