Homework Answers
Cost of inventory = $980,00
Market value of inventory = $900,000
Note:- Market value of inventory is higher of NRV or replacement value
NRV = 1,020,000 - 40,000 - 120,000 = 860,000
Replacement value = 900,000
Market value higher of 860,000 or 900,000 = 900,000
Inventory value = lower of cost or market value
= 980,000 or 900,000 = $900,000
Loss to be recognised = 980,000 - 900,000 = $80,000
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tys O. Rayyan Distribution an Distribution Cohan detened Internation portining to that inventory follow December 31,...
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Teel Distribution Co. LCM Question Where I am confused is that when following LCM, the market...
Teel Distribution Co. LCM Question
Where I am confused is that when following LCM, the market value
should be the replacement cost, at 225, given that it is the
middle-value between the ceiling and floor of 245 and 215
respectively. With that in mind, the loss should be reflected as 25
(250 cost - 225 LCM); what am I missing here? Please explain in
detail for rating.
1. Teel Distribution Co. has determined its December 31, 2007 inventory on a...
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Holtz Inc. has the following per-unit data for items in inventory on December 31, 2014: Item 1 Cost Selling Cost Normal Profit Replacement Cost $10.00 Estimated Sales Price $13.00 $10.50 $1.25 $2.00 Blarney Stones Shamrocks Four Leaf Clovers Funny Hats 7.00 3.001 6.50 2.25 9.75 4.65 0.75 0.75 1.10 0.60 6.50 7.00 7.25 1.25 1.50 Applying the lower-of-cost-or-market (LCM) to the above information, provide the following information: Market Lower-of-Cost-or-Market Item Blarney Stones Shamrocks Four Leaf Clovers Funny Hats
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The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory...
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The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory is as follows: Per Unit Product Cost Replacement Cost Selling Price $ 50 $ 45 $ 70 90 80 110 65 90 110 140 30 38 40 50 Selling costs consist of a sales commission equal to 15% of selling price and shipping costs equal to 5% of cost. The normal profit is 30% of selling price. Required: What unit value should Royal Decking...
The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory...
The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory is as follows: Product Cost $ 59 Per Unit Replacement Cost $ 54 Selling Price $ 79 119 99 89 поопP 99 59 119 39 74 89 47 149 49 Selling costs consist of a sales commission equal to 15% of selling price and shipping costs equal to 5% of cost. The normal profit is 25% of selling price. Required: What unit value should...
Sheridan Distribution Co. has determined its December 31, 2020 inventory on a LIFO basis at $917000. Information pertaining to that inventory follows: $950000 Estimated selling price 33000 Estimated cost of disposal 113000 Normal profit margin 837000 Current replacement cost Sheridan records losses that result from applying the lower-of-cost-or-market rule. At December 31, 2020, the loss that Sheridan should recognize is $0. O$80000 $113000. $33000
Teel Distribution Co. LCM Question
Where I am confused is that when following LCM, the market value
should be the replacement cost, at 225, given that it is the
middle-value between the ceiling and floor of 245 and 215
respectively. With that in mind, the loss should be reflected as 25
(250 cost - 225 LCM); what am I missing here? Please explain in
detail for rating.
1. Teel Distribution Co. has determined its December 31, 2007 inventory on a...
The December 31, 2020, Inventory of Balley Inc. consisted of four products, for which certain Information is provided below: Replacement Estimated Expected Product Original Cost Disposal Cost Selling Price A $29.00 $22.00 $6.50 $40.00 B $44.00 $40.00 $8.00 $48.00 с $145.00 $125.00 $25.00 $190.00 $21.00 $15.80 $3.00 $28.00 Cost ** D | Replacement cost: Cost of Bailey to replace/replenish' the unit of inventory. Required: a. Using the lower of cost and NRV approach applied on an individual-item basis, calculate the...
Holtz Inc. has the following per-unit data for items in inventory on December 31, 2014: Item 1 Cost Selling Cost Normal Profit Replacement Cost $10.00 Estimated Sales Price $13.00 $10.50 $1.25 $2.00 Blarney Stones Shamrocks Four Leaf Clovers Funny Hats 7.00 3.001 6.50 2.25 9.75 4.65 0.75 0.75 1.10 0.60 6.50 7.00 7.25 1.25 1.50 Applying the lower-of-cost-or-market (LCM) to the above information, provide the following information: Market Lower-of-Cost-or-Market Item Blarney Stones Shamrocks Four Leaf Clovers Funny Hats
The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory is as follows: Product Cost $ 48 88 Per Unit Replacement Cost $ 43 78 63 Selling Price $ 68 108 48 88 Uw 108 28 138 38 Selling costs consist of a sales commission equal to 10% of selling price and shipping costs equal to 5% of cost. The normal profit is 40% of selling price. Required: What unit value should Royal Decking...
The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory is as follows: Product Cost $ 55 Per Unit Replacement Cost $ 50 Selling Price $ 75 115 95 ROA 85 95 55 115 35 70 85 145 45 43 Selling costs consist of a sales commission equal to 10% of selling price and shipping costs equal to 5% of cost. The normal profit is 30% of selling price. Required: What unit value should...
The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory is as follows: Per Unit Product Cost Replacement Cost Selling Price $ 50 $ 45 $ 70 90 80 110 65 90 110 140 30 38 40 50 Selling costs consist of a sales commission equal to 15% of selling price and shipping costs equal to 5% of cost. The normal profit is 30% of selling price. Required: What unit value should Royal Decking...
The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory is as follows: Product Cost $ 59 Per Unit Replacement Cost $ 54 Selling Price $ 79 119 99 89 поопP 99 59 119 39 74 89 47 149 49 Selling costs consist of a sales commission equal to 15% of selling price and shipping costs equal to 5% of cost. The normal profit is 25% of selling price. Required: What unit value should...
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