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As per the international accounting standard 2, if the resalue value of inventory is lower than origina cost
then inventory is valued at lower of cost or market method.
As per the international accounting standard 2, if the resalue value of inventory is higher than originak cost
then inventory is valued at cost
So,the answe is lower than original cost
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Destion 5 If the resale value of inventory is than its original cost, the value of...
Thank you ! The original cost of an item of inventory is above its replacement cost....
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The original cost of an item of inventory is above its replacement cost. The item's replacement cost is below its net realizable value but is higher than its net realizable value minus a normal profit. Under the lower of cost or market method, the inventory item should be valued at Multiple Choice Net realizable value Original cost Replacement cost Net realizable value less normal profit margin
A company has the following per unit original costs and replacement costs for its inventory. LCM...
A company has the following per unit original costs and replacement costs for its inventory. LCM is applied to individual items. Part A: 50 units with a cost of $5, and replacement cost of $4.50 Part B: 75 units with a cost of $6, and replacement cost of $6.50 Part C: 160 units with a cost of $3, and replacement cost of $2.50 Under the lower of cost or market method, the total value of this company's ending inventory is:
Brief Exercise 6-37 (Algorithmic) Lower of Cost or Market Garcia Company uses FIFO, and its inventory...
Brief Exercise 6-37 (Algorithmic) Lower of Cost or Market Garcia Company uses FIFO, and its inventory at the end of the year was recorded in its accounting records at $19,300. Due to technological changes in the market, Garcia would be able to replace its inventory for $15,440. Required: 1. Using the lower of cost or market method, what amount should Garcia report for inventory on its balance sheet at the end of the year? 2. Prepare the journal entry required...
A company has the following per unit original costs and replacement costs for its inventory. Part...
A company has the following per unit original costs and replacement costs for its inventory. Part A: 10 units with a cost of $3 and replacement cost of $2.50. Part B.40 units with a cost of $9 and replacement cost of $9.50. Part.75 units with a cost of $8 and replacement cost of $750. Under the lower of cost or market method, the total value of this company's ending inventory must be reported as: $990.00 or $94750 depending upon whether...
When the value of inventory falls below its cost, companies other than those that use LIFO...
When the value of inventory falls below its cost, companies other than those that use LIFO have the option of recording the inventory at cost or the lower net realizable value. True False 25 135 When the net realizable value of inventory falls below its cost, no adjustment to the accounting records is needed True False 016 18 The adjustment to write down inventory from cost to its lower net realizable value includes a debit to Cost of Goods Sold...
Diego Corporation values its inventory at the lower of cost or net realizable value as required...
Diego Corporation values its inventory at the lower of cost or net realizable value as required by IFRS. Diego has the following information regarding its inventory Historical cost $100,000 Estimated selling price 98,000 Estimated costs to complete and sell 3,000 Replacement cost 90,000 What is the amount for inventory that Diego should report on the balance sheet under the lower of cost or net realizable value method? O$95,000 $97,000 O$98,000 $100,000
How does the retail inventory method establish the lower-of-cost-or-market valuation for ending inventory? 1. The procedure...
How does the retail inventory method establish the lower-of-cost-or-market valuation for ending inventory? 1. The procedure is applied on a cost basis at the unit level. 2. By excluding net markups from the cost-to-retail ratio. 3. By excluding beginning inventory from the cost-to-retail ratio. 4. By excluding net markdowns from the cost-to-retail ratio. The original cost of an inventory item is above the replacement cost and below the net realizable value. The net realizable value less the normal profit margin...
per Unit Jake Stone Company evaluated its inventory using the Lower of Cost or Market method....
per Unit Jake Stone Company evaluated its inventory using the Lower of Cost or Market method. If the Lower of Cost or Market was applied to the following items, what should the total inventory value be? Inventory Cost per Market value Total Total Item Quantity Unit Cost Market 300 $15.00 $14.50 $4,500 $4,350 200 $14.00 $15.00 $2,800 $3,000 $17.00 $17.50 $1,700 $1,750 100
Lower-of-Cost-or-Market Method On the basis of the following data, determine the value of the inventory at...
Lower-of-Cost-or-Market Method On the basis of the following data, determine the value of the inventory at the lower-of-cost-or-market by applying lower-of-cost-or-market to each inventory Item, as shown in Exhibit 10. TtemInventory QuantityCost per UnitMarket Value per Unit(Net Realizable Value)JFW199$23$21SAW92071217
Lower-of-Cost-or-Net Realizable Value Method The following data are taken from the Simpson Corporation's inventory accounts: Net...
Lower-of-Cost-or-Net Realizable Value Method The following data are taken from the Simpson Corporation's inventory accounts: Net Item Unit Realizable Code Quantity Cost Value Product 1 ZKE 100 552 $50 ZKF 300 63 Product 2 MNJ 400 52 MNS 2006 Calculate the value of the company's ending inventory using the lower-of-cost-or-market method applied to each item of inventory. Applying the lower-of-cost-or-market method to each item of the inventory results in an ending inventory amount of S Previous Save Answers
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The original cost of an item of inventory is above its replacement cost. The item's replacement cost is below its net realizable value but is higher than its net realizable value minus a normal profit. Under the lower of cost or market method, the inventory item should be valued at Multiple Choice Net realizable value Original cost Replacement cost Net realizable value less normal profit margin
Brief Exercise 6-37 (Algorithmic) Lower of Cost or Market Garcia Company uses FIFO, and its inventory at the end of the year was recorded in its accounting records at $19,300. Due to technological changes in the market, Garcia would be able to replace its inventory for $15,440. Required: 1. Using the lower of cost or market method, what amount should Garcia report for inventory on its balance sheet at the end of the year? 2. Prepare the journal entry required...
A company has the following per unit original costs and replacement costs for its inventory. Part A: 10 units with a cost of $3 and replacement cost of $2.50. Part B.40 units with a cost of $9 and replacement cost of $9.50. Part.75 units with a cost of $8 and replacement cost of $750. Under the lower of cost or market method, the total value of this company's ending inventory must be reported as: $990.00 or $94750 depending upon whether...
When the value of inventory falls below its cost, companies other than those that use LIFO have the option of recording the inventory at cost or the lower net realizable value. True False 25 135 When the net realizable value of inventory falls below its cost, no adjustment to the accounting records is needed True False 016 18 The adjustment to write down inventory from cost to its lower net realizable value includes a debit to Cost of Goods Sold...
Diego Corporation values its inventory at the lower of cost or net realizable value as required by IFRS. Diego has the following information regarding its inventory Historical cost $100,000 Estimated selling price 98,000 Estimated costs to complete and sell 3,000 Replacement cost 90,000 What is the amount for inventory that Diego should report on the balance sheet under the lower of cost or net realizable value method? O$95,000 $97,000 O$98,000 $100,000
per Unit Jake Stone Company evaluated its inventory using the Lower of Cost or Market method. If the Lower of Cost or Market was applied to the following items, what should the total inventory value be? Inventory Cost per Market value Total Total Item Quantity Unit Cost Market 300 $15.00 $14.50 $4,500 $4,350 200 $14.00 $15.00 $2,800 $3,000 $17.00 $17.50 $1,700 $1,750 100
Lower-of-Cost-or-Net Realizable Value Method The following data are taken from the Simpson Corporation's inventory accounts: Net Item Unit Realizable Code Quantity Cost Value Product 1 ZKE 100 552 $50 ZKF 300 63 Product 2 MNJ 400 52 MNS 2006 Calculate the value of the company's ending inventory using the lower-of-cost-or-market method applied to each item of inventory. Applying the lower-of-cost-or-market method to each item of the inventory results in an ending inventory amount of S Previous Save Answers
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