If the cost of an item of inventory is $49.00 and the current replacement cost is $66.00, what is the amount included in...
If the cost of an item of inventory is $49.00 and the current replacement cost is $66.00, what is the amount included in inventory according to the lower of cost or market?
Select the correct answer.
$66.00
$49.00
$115.00
$17.00
Homework Answers
Replacement cost can be used as NRV
| Cost | NRV | Lower of cost or NRV | |
| Inventory | 49 | 66 | 49 |
So answer is b) $49
Add Answer to:
If the cost of an item of inventory is $49.00 and the current replacement cost is $66.00, what is the amount included in...
Thank you ! The original cost of an item of inventory is above its replacement cost....
Thank you !
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's total cost of FIFO inventory was $329,000 and its current replacement cost is $307,000....
A company's total cost of FIFO inventory was $329,000 and its current replacement cost is $307,000. Under the lower cost or market, the amount reported should be $329,000. True or False.
Intermediate accounting Item Quantity Unit Cost Replacement Cost/Unit Estimated Selling Price/Unit Completion & Disposal Cost/Unit Normal...
Intermediate accounting Item Quantity Unit Cost Replacement Cost/Unit Estimated Selling Price/Unit Completion & Disposal Cost/Unit Normal Profit Margin/Unit A 1,700 $7.95 $8.90 $11.13 $1.59 $1.91 B 1,400 8.69 8.37 9.96 0.95 1.27 C 1,600 5.94 5.72 7.63 1.22 0.64 D 1,600 4.03 4.45 6.68 0.85 1.59 E 2,000 6.78 6.68 7.10 0.74 1.06 Greg Forda is an accounting clerk in the accounting department of Crane Co., and he cannot understand why the market value keeps changing from replacement cost to...
Lower of Cost or Market Palmquist Company has five different inventory items that it values by th...
Lower of Cost or Market Palmquist Company has five different inventory items that it values by the lower of cost or market rule applied on an individual item basis. The normal markup on all items is 20% of cost. The following information is obtained from the company’s records: Item Units Cost Replacement Cost Net Realizable Value 1 500 $10.00 $ 9.10 $ 9.20 2 400 8.00 8.10 7.80 3 300 15.00 13.50 14.00 4 200 18.00 12.00 17.00 5 100...
If the cost of an item of inventory is $80 and the current selling price is...
If the cost of an item of inventory is $80 and the current selling price is $75, the amount shown in inventory on the balance sheet under the lower-of-cost-and-net realizable-value rule is O A $80 OB. $75 OC. $75 or $80 OD. $155
QUESTION 9 Under the lower-of-cost-or-market basis in valuing inventory, market is defined as a. current replacement...
QUESTION 9 Under the lower-of-cost-or-market basis in valuing inventory, market is defined as a. current replacement cost. b. selling price. C. historical cost plus 10%. d. selling price less markup.
. What is the difference in current replacement cost and designated market value as far as...
. What is the difference in current replacement cost and designated market value as far as lower of cost or market?
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...
Apply the lower of cost or market on an item-by-item basis to the following inventory. Item...
Apply the lower of cost or market on an item-by-item basis to the following inventory. Item A: Total cost = $4500, Total market = $4350 Item B: Total cost = $2800, Total market = $3000 Item C: Total cost = $1700, Total market = $1750
Information about an item of inventory accounted for using the LIFO method is given below: Historical...
Information about an item of inventory accounted for using the LIFO method is given below: Historical cost $36.00 Selling price 60.00 Cost to distribute 4.00 Replacement cost 35.00 Normal profit margin % of selling price) 30% At what amount should the inventory item be reported in the financial statements under the lower-of-cost-or-market (LCM) rule. O A $36 B. $56 OC. $35 OD. $38
Thank you !
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
If the cost of an item of inventory is $80 and the current selling price is $75, the amount shown in inventory on the balance sheet under the lower-of-cost-and-net realizable-value rule is O A $80 OB. $75 OC. $75 or $80 OD. $155
QUESTION 9 Under the lower-of-cost-or-market basis in valuing inventory, market is defined as a. current replacement cost. b. selling price. C. historical cost plus 10%. d. selling price less markup.
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...
Apply the lower of cost or market on an item-by-item basis to the following inventory. Item A: Total cost = $4500, Total market = $4350 Item B: Total cost = $2800, Total market = $3000 Item C: Total cost = $1700, Total market = $1750
Information about an item of inventory accounted for using the LIFO method is given below: Historical cost $36.00 Selling price 60.00 Cost to distribute 4.00 Replacement cost 35.00 Normal profit margin % of selling price) 30% At what amount should the inventory item be reported in the financial statements under the lower-of-cost-or-market (LCM) rule. O A $36 B. $56 OC. $35 OD. $38
Most questions answered within 3 hours.
-
A 4.0 L flask containing chlorine gas is connected to an
evacuated 3.0 L flask. If...
asked 14 minutes ago -
The number of years of education of self-employed individuals in
the United States has a population...
asked 1 minute ago -
Can I get a C++ code and output for this program using classes
instead of using...
asked 3 minutes ago -
Write an essay containing your thoughts on
whether corporations should be limited in the amount of...
asked 15 minutes ago -
Given the following two sequences x (n)=[3 , 11,7 ,0 ,−1, 4 ,2
],−3≤n≤ 3 ;...
asked 14 minutes ago -
What is the minimal sample size needed for a 95% confidence
interval to have a maximal...
asked 16 minutes ago -
1. Methods of collecting data - Experiments and direct
observation
In each of the following situations,...
asked 29 minutes ago -
Each protein is composed of a maximum of ____________ different
amino acids in varying numbers and...
asked 46 minutes ago -
One member in the comp set that did not have supply, demand, and
revenue data. What...
asked 24 minutes ago -
What is the density of a substance that takes up 3.4e3 cubic cm
and weighs 1.96...
asked 39 minutes ago -
Consider a single wire loop of radius a. Calculate the magnetic
field B(z) along the axis...
asked 35 minutes ago -
For each of the compounds listed below you must draw the Lewis
dot structure in the...
asked 38 minutes ago