Cullumber Distribution Co. has determined its December 31, 2017 inventory on a LIFO basis at $989000....
Cullumber Distribution Co. has determined its December 31, 2017
inventory on a LIFO basis at $989000. Information pertaining to
that inventory follows:
| Estimated selling price |
$1030000 |
| Estimated cost of disposal |
41000 |
| Normal profit margin |
121000 |
| Current replacement cost |
909000 |
Cullumber records losses that result from applying the
lower-of-cost-or-market rule. At December 31, 2017, the loss that
Cullumber should recognize is
| $80000. |
| $0. |
| $42000. |
| $122000. |
Homework Answers
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Cullumber Distribution Co. has determined its December 31, 2017
inventory on a LIFO basis at $989000....
Sheridan Distribution Co. has determined its December 31, 2020 inventory on a LIFO basis at $917000....
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
tys O. Rayyan Distribution an Distribution Cohan detened Internation portining to that inventory follow December 31,...
tys O. Rayyan Distribution an Distribution Cohan detened Internation portining to that inventory follow December 31, 2020 Estimated selling price 51.020.000 Estimated cost of disposal 40. Normal prontmartin 120.000 90.000 Current replacement COSE Rayyan records losses that rent from applying the lower of color market ne December 31. 2020, the loss that Rayyan should recognize is
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...
Aberforth Dumbledore Co. has determined its year-end inventory on a LIFO basis to be $609,000. Information...
Aberforth Dumbledore Co. has determined its year-end inventory on a LIFO basis to be $609,000. Information pertaining to that inventory is as follows: Selling price Costs to sell Normal profit margin Replacement cost $ 739,000 61,000 43,000 616,000 What amount of ending inventory should Aberforth report?
Memiman Manufacturing has determined its year-end inventory on a LIFO basis to be $620,000
Memiman Manufacturing has determined its year-end inventory on a LIFO basis to be $620,000 Information pertaining to the inventory is as follows: Selling price $740,000 Costs to sell $39,900 Normal profit margin $90,000 Replacement cost $840,000 What should be the reported value of Merriman's inventory?
Compute the inventory amounts at December 31, 2017 and 2018, using dollar value LIFO inventory method....
Compute the inventory amounts at December 31, 2017 and 2018,
using dollar value LIFO inventory method.
Problem 8-9 On January 1, 2017, Sweet Wholesalers Inc. adopted the dollar-value LIFO inventory method for income tax and external financial reporting purposes. However, Sweet continued to use the FIFO inventory method for internal accounting and management purposes. In applying the LIFO method, Sweet uses internal conversion price indexe and the multiple pools approach under which substantially identical inventory items are grouped into LIFO...
The inventory of Cullumber Company on December 31, 2017, consists of the following items. Part Quantity...
The inventory of Cullumber Company on December 31, 2017,
consists of the following items.
Part
Quantity
Cost per Unit
Net Realizable Value
110
640
$126
$133
111
1,100
80
69
112
450
106
101
113
190
226
239
120
410
273
277
121
a
1,700
21
1
122
320
319
313
a Part No. 121 is obsolete and has a realizable value of
$1 each as scrap.
(a) Determine the inventory as of December 31,
2017, by the LCNRV method,...
Cypress Co. has the following LIFO perpetual inventory records: Date December 1 December 7 December 18...
Cypress Co. has the following LIFO perpetual inventory records: Date December 1 December 7 December 18 December 31 $1,700 Purchases Cost of Goods Sold Inventory on Hand $4,050 $5,250 $4,250 $5,950 $1,200 $1,000 The current replacement cost of the ending inventory is $3,200. To apply the lower-of-cost-or-market rule, the journal entry would be: O A. Debit Cost of Goods Sold $2,750, credit Inventory $2,750 O B. Debit Inventory $2,750, credit Cost of Goods Sold $$2,750 O C. Debit inventory $1,000,...
Can you explain. Question2 and LIFO method. As of December 31, 2018, the inventory subsidiary ledger...
Can you explain.
Question2 and LIFO method. As of December 31, 2018, the inventory subsidiary ledger shows the following ending inventory for a particular product: Lion Inc., uses perpetual inventory system Purchase date Unit Unit cost June 3 August 14 78 S.7 December5 45 $1.8 234 S1. A year-end ending inventory at December 31, 2018, however, 421 units on hand. In its financial statements, Lion Inc. values its inventories at lower-of-cost -or market (LCM). As of December 31, 2018, replacement...
Montana Co. has determined its year-end inventory on a FIFO basis to be $600,000. Information pertaining...
Montana Co. has determined its year-end inventory on a FIFO basis to be $600,000. Information pertaining to that inventory is as follows: Selling price $ 620,000 Costs to sell 30,000 Replacement cost 520,000 What should be the reported value of Montana’s inventory? Multiple Choice a. $600,000. b. $520,000. c. $590,000. d. $620,000.
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
tys O. Rayyan Distribution an Distribution Cohan detened Internation portining to that inventory follow December 31, 2020 Estimated selling price 51.020.000 Estimated cost of disposal 40. Normal prontmartin 120.000 90.000 Current replacement COSE Rayyan records losses that rent from applying the lower of color market ne December 31. 2020, the loss that Rayyan should recognize is
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...
Aberforth Dumbledore Co. has determined its year-end inventory on a LIFO basis to be $609,000. Information pertaining to that inventory is as follows: Selling price Costs to sell Normal profit margin Replacement cost $ 739,000 61,000 43,000 616,000 What amount of ending inventory should Aberforth report?
Compute the inventory amounts at December 31, 2017 and 2018,
using dollar value LIFO inventory method.
Problem 8-9 On January 1, 2017, Sweet Wholesalers Inc. adopted the dollar-value LIFO inventory method for income tax and external financial reporting purposes. However, Sweet continued to use the FIFO inventory method for internal accounting and management purposes. In applying the LIFO method, Sweet uses internal conversion price indexe and the multiple pools approach under which substantially identical inventory items are grouped into LIFO...
The inventory of Cullumber Company on December 31, 2017,
consists of the following items.
Part
Quantity
Cost per Unit
Net Realizable Value
110
640
$126
$133
111
1,100
80
69
112
450
106
101
113
190
226
239
120
410
273
277
121
a
1,700
21
1
122
320
319
313
a Part No. 121 is obsolete and has a realizable value of
$1 each as scrap.
(a) Determine the inventory as of December 31,
2017, by the LCNRV method,...
Cypress Co. has the following LIFO perpetual inventory records: Date December 1 December 7 December 18 December 31 $1,700 Purchases Cost of Goods Sold Inventory on Hand $4,050 $5,250 $4,250 $5,950 $1,200 $1,000 The current replacement cost of the ending inventory is $3,200. To apply the lower-of-cost-or-market rule, the journal entry would be: O A. Debit Cost of Goods Sold $2,750, credit Inventory $2,750 O B. Debit Inventory $2,750, credit Cost of Goods Sold $$2,750 O C. Debit inventory $1,000,...
Can you explain.
Question2 and LIFO method. As of December 31, 2018, the inventory subsidiary ledger shows the following ending inventory for a particular product: Lion Inc., uses perpetual inventory system Purchase date Unit Unit cost June 3 August 14 78 S.7 December5 45 $1.8 234 S1. A year-end ending inventory at December 31, 2018, however, 421 units on hand. In its financial statements, Lion Inc. values its inventories at lower-of-cost -or market (LCM). As of December 31, 2018, replacement...
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