Ivanhoe 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, 2017. Item Quantity Unit Cost Replacement Cost/Unit Estimated Selling Price/Unit Completion & Disposal Cost/Unit Normal Profit Margin/Unit A 1,900 $9.23 $10.33 $12.92 $1.85 $2.21 B 1,600 10.09 9.72 11.56 1.11 1.48 C 1,800 6.89...
12. Home Stop sells two product categories, furniture and accessories. Information pertaining to its 2021 year-end inventory is as follows: Inventory, by Product Category Furniture: Chairs Per Unit Quantity Market Cost $35 41 20 Desks 60 83 68 Tables 70 94 102 Accessories: Rugs Lamps 30 70 58 70 32 28 Required: 1. Determine the carrying value of inventory at...
Rowan Company has four different categories of inventory. The quantity, cost, and market value for each of the inventory categories are as follows: Item Quantity Cost Per Unit Market Value Per Unit 1 220 $ 4.40 $ 4.60 2 130 $ 6.20 $ 6.00 3 100 $ 10.00 $ 9.25 4 25 $ 20.50 $ 25.00 The company carries inventory...
Metlock 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 1,600 1,300 1,500 1,500 1,900 Unit Cost $8.33 9.10 6.22 4.22 7.10 Replacement Cost/Unit $9.32 8.77 5.99 4.66 6.99 Estimated Selling Price/Unit $11.66 10.43 7.99 6.99 7.44 Completion & Disposal Cost/Unit...
Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Product Quantity Unit Cost Unit Replacement Cost Unit Selling Price A 1,000 $ 28 $ 30 $ 34 B 900 33 29 36 C 500 21 20 26 D 600 25 22 24 E 700 32 30 31 The cost to sell for each...
The following data refer to Coat Company's ending inventory: Item Code Quantity Unit Cost Unit Market Small 100 $171 $174 Medium 420 114 132 Large 600 126 132 Extra-Large 220 201 192 How much is the inventory if the lower-of-cost-or-net realizable value rule is applied to each item of inventory? Select one: A. $189,480 B. $182,820 C. $199,080 D. None...
cene PE UNE LPDILEMU DUS LOMMees me Sc r een d. 1. If a company values inventory at the lower of cost or market, which of the following is the value of inventory on the balance sheet? Apply the lower-of-cost-or-market method to inventory as a whole. Item I nventory Quantity Unit Cost Price Unit Market Price Product C L 420...
Ames Trading Co. has the following products in its ending inventory. Product Mountain bikes Skateboards Gliders Quantity cost per Unit $ 700 230 870 Market per Unit $650 260 830 8 02:23:38 Compute lower of cost or market for inventory applied separately to each product. Per Unit Cost Market Total Cost Market LCM applied to each product Print Units Inventory...
2. At 12/31/20, the end of Jenner Company's first year of business, inventory was $6,100 and $5,100 at cost and at market, respectively. Following is data relative to the 12/31/21 inventory of Jenner: Original Net Net Realizable Appropriate Cost Replacement Realizable Value Less Inventory Item Per Unit Value Normal Profit Value $.65 $.45 .45 .70 .75 .75 .65 .90 Cost...
QUESTION 16 16. What happens when prices are rising? A. LIFO will result in lower net income and a lower inventory valuation than will FIFO. B.LIFO will result in lower net income and a higher inventory valuation than will FIFO. C. LIFO will result in higher net income and a higher inventory valuation than will FIFO. D. LIFO will result...