1. Assume that Palmquist uses the FIFO cost flow assumption. Compute the correct inventory value under the lower of cost or net realizable value rule. Round your answers to the nearest cent. Item Lower of Cost or NRV 1 $ fill in the blank 1 2 fill in the blank 2 3 fill in the blank 3 4 fill in the blank 4 5 fill in the blank 5 Compute the total inventory value if the lower of cost or net realizable value is applied to each individual item. $ fill in the blank 6 2. Assume that Palmquist uses the LIFO cost flow assumption. Compute the correct inventory value under the lower of cost or market rule. Round your answers to the nearest cent. Item Lower of Cost or Market 1 $ fill in the blank 7 2 fill in the blank 8 3 fill in the blank 9 4 fill in the blank 10 5 fill in the blank 11 Compute the total inventory value if the lower of cost or market is applied to each individual item. $ fill in the blank 12 3. Assume that Palmquist uses IFRS. Compute the correct inventory value under the lower of cost or net realizable value rule. Round your answers to the nearest cent. Item Lower of Cost or NRV 1 $ fill in the blank 13 2 fill in the blank 14 3 fill in the blank 15 4 fill in the blank 16 5 fill in the blank 17 Compute the total inventory value if the lower of cost or market is applied to each individual item.
Palmquist Company has five different inventory items and applies the
| 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 | 25.00 | 25.50 | 25.30 |
Required:
1. Assume that Palmquist uses the FIFO cost flow assumption. Compute the correct inventory value under the lower of cost or net realizable value rule. Round your answers to the nearest cent.
Item |
Lower of Cost or NRV |
|
| 1 | $ fill in the blank 1 | |
| 2 | fill in the blank 2 | |
| 3 | fill in the blank 3 | |
| 4 | fill in the blank 4 | |
| 5 | fill in the blank 5 |
Compute the total inventory value if the lower of cost or net realizable value is applied to each individual item.
$ fill in the blank 6
2. Assume that Palmquist uses the LIFO cost flow assumption. Compute the correct inventory value under the lower of cost or market rule. Round your answers to the nearest cent.
Item |
Lower of Cost or Market |
|
| 1 | $ fill in the blank 7 | |
| 2 | fill in the blank 8 | |
| 3 | fill in the blank 9 | |
| 4 | fill in the blank 10 | |
| 5 | fill in the blank 11 |
Compute the total inventory value if the lower of cost or market is applied to each individual item.
$ fill in the blank 12
3. Assume that Palmquist uses IFRS. Compute the correct inventory value under the lower of cost or net realizable value rule. Round your answers to the nearest cent.
Item |
Lower of Cost or NRV |
|
| 1 | $ fill in the blank 13 | |
| 2 | fill in the blank 14 | |
| 3 | fill in the blank 15 | |
| 4 | fill in the blank 16 | |
| 5 | fill in the blank 17 |
Compute the total inventory value if the lower of cost or market is applied to each individual item.
$ fill in the blank 18
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