IAS 2 requires entities to measure inventories at the lower of cost and a. Net realizable...
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IAS 2 requires entities to measure inventories at the lower of cost and
a. Net realizable value
b. Replacement cost
c. Market value
d. None of the above
Homework Answers
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Option A Net realizable value |
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IAS 2 deals with the valuation of inventories. As per this standard, entities should measure the inventories at the lower of cost or net realizable value Comment if you face any issues Thank you |
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IAS 2 requires entities to measure inventories at the lower of
cost and
a.
Net realizable...
Bramble Company developed the following information about its inventories in applying the lower-of-cost-or-net realizable value (LCM)...
Bramble Company developed the following information about its inventories in applying the lower-of-cost-or-net realizable value (LCM) basis in valuing inventories. Net realizable Product Cost value A $114000 $128000 B 83000 78000 C 152000 165000 If Bramble applies the LCNRV basis, the value of the inventory reported on the balance sheet would be
Marigold Corp. developed the following information about its inventories in applying the lower-of-cost-or-net-realizable-value(LCNRV) basis in valuing...
Marigold Corp. developed the following information about its inventories in applying the lower-of-cost-or-net-realizable-value(LCNRV) basis in valuing inventories: Product Cost Market A $89000 $94000 B 62000 59000 C 125000 126000 After Marigold Corp. applies the LCNRV rule, the value of the inventory reported on the balance sheet would be $273000. $282000. $276000. $279000.
When net realizable value is lower than cost, and the loss method applying the lower-of-cost-and-net-realizable approach...
When net realizable value is lower than cost, and the loss method applying the lower-of-cost-and-net-realizable approach of recording the write-down is used, what account is credited? A. Allowance to Reduce Inventory to NRV. B. Inventory. C. Cost of Goods Sold. D. A loss account.
Answer the following questions related to the lower-of-cost-or-net realizable value (LCNRV) method and/or the lower...
Answer the following questions related to the lower-of-cost-or-net realizable value (LCNRV) method and/or the lower-of- cost-or-market (LCM) method. 1. Why are inventories valued at the LCNRV or LCM? (i.e., why is it necessary to perform this calculation for inventories)? 2. What two methods are used to record the necessary journal entry for LCNRV and LCM? Which method is preferred and why?
Cost Net realizable value Net realizable value less normal profit Market replacement cost 1 $7.60 9.05 8.50 7.70 2 $11....
Cost Net realizable value Net realizable value less normal profit Market replacement cost 1 $7.60 9.05 8.50 7.70 2 $11.30 9.80 8.75 9.90 3 $11.65 12.40 11.00 12.70 4 $6.05 5.10 3.25 4.85 5 $7.60 6.90 5.80 4.50 Determine the proper unit inventory price in the above independent cases by applying the lower of cost or market rule. Case 1 $ Case 2 Case 3 Case 4 Case 5
Cost Net realizable value Net realizable value less normal profit Market replacement cost 1 $6.90 9.15...
Cost Net realizable value Net realizable value less normal profit Market replacement cost 1 $6.90 9.15 8.15 7.00 2 $11.45 9.95 9.20 10.05 3 $11.65 13.30 11.20 13.60 4 $6.90 5.10 3.80 4.85 5 $8.05 6.95 6.25 4.50 Determine the proper unit inventory price in the above independent cases by applying the lower of cost or market rule. Case 1 s Case 2 Case 3 Case 4 Case 5
Parry Company has five different inventory items that are valued by the lower or net realizable...
Parry Company has five different inventory items that are valued by the lower or net realizable value method applied on an individual basis. The normal markup on all items is 20% of cost. The following information was obtained from the accounting records. item/cost replacement cost net realizable value net realizable value - normal profit designated market value final inventory value A. 5000 4550 4600 B. 3200 3240 3120 C. 4500 4050 4200 D. 3600 2400 3400 E. 2500 2550 2530...
QUESTION 1 (IAS 2) (30) Part a According to IAS 2 Inventories the general rule for...
QUESTION 1 (IAS 2) (30) Part a According to IAS 2 Inventories the general rule for valuation of inventories is that inventories are valued at the lower of cost or net realisable value. The following information relates to an auto parts dealer in Gweru who hold inventory types A, B, C, and D Details | A Selling price of inventory per unit $8,000 Purchase price of inventory per unit $5,000 Value Added Tax $1,000 Agent's commission per unit $50 Transportation...
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
For companies using LIFO, inventory is valued at: Multiple Choice Net realizable value. Cost. Replacement cost....
For companies using LIFO, inventory is valued at: Multiple Choice Net realizable value. Cost. Replacement cost. Lower of cost or market.
Answer the following questions related to the lower-of-cost-or-net realizable value (LCNRV) method and/or the lower-of- cost-or-market (LCM) method. 1. Why are inventories valued at the LCNRV or LCM? (i.e., why is it necessary to perform this calculation for inventories)? 2. What two methods are used to record the necessary journal entry for LCNRV and LCM? Which method is preferred and why?
Cost Net realizable value Net realizable value less normal profit Market replacement cost 1 $7.60 9.05 8.50 7.70 2 $11.30 9.80 8.75 9.90 3 $11.65 12.40 11.00 12.70 4 $6.05 5.10 3.25 4.85 5 $7.60 6.90 5.80 4.50 Determine the proper unit inventory price in the above independent cases by applying the lower of cost or market rule. Case 1 $ Case 2 Case 3 Case 4 Case 5
Cost Net realizable value Net realizable value less normal profit Market replacement cost 1 $6.90 9.15 8.15 7.00 2 $11.45 9.95 9.20 10.05 3 $11.65 13.30 11.20 13.60 4 $6.90 5.10 3.80 4.85 5 $8.05 6.95 6.25 4.50 Determine the proper unit inventory price in the above independent cases by applying the lower of cost or market rule. Case 1 s Case 2 Case 3 Case 4 Case 5
QUESTION 1 (IAS 2) (30) Part a According to IAS 2 Inventories the general rule for valuation of inventories is that inventories are valued at the lower of cost or net realisable value. The following information relates to an auto parts dealer in Gweru who hold inventory types A, B, C, and D Details | A Selling price of inventory per unit $8,000 Purchase price of inventory per unit $5,000 Value Added Tax $1,000 Agent's commission per unit $50 Transportation...
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
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