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2. Metro Animal Feeds has developed the following data in order to calculate the lower of cost or net realizable value for its products (in thousands). The products are listed within their category of feed product. Cattle Horse Cat Dog. Ferret Rabbit Selling Price $320 400 $360 120 $140 75 Cost $160 • 400 $320 90 $112 45 Cost to Replace $170 325 $280 40 $98 25 The disposal costs are 20% of the selling price and the normal profit margin on all feed is 25% of the selling price. Required: Determine the reported inventory value assuming the lower of cost or market rule is Japplied to individual animal feed products.

2. Metro Animal Feeds has developed the following data in order to calculate the lower of cost or net realizable value for its products (in thousands). The products are listed within their category of feed product. Cattle Horse Cat Dog. Ferret Rabbit Selling Price $320 400 $360 120 $140 75 Cost $160 • 400 $320 90 $112 45 Cost to Replace $170 325 $280 40 $98 25 The disposal costs are 20% of the selling price and the normal profit margin on all feed is 25% of the selling price. Required: Determine the reported inventory value assuming the lower of cost or market rule is Japplied to individual animal feed products.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. Metro Animal Feeds has developed the following data in order to calculate the lower of cost or net realizable value for its products (in thousands). The products are listed within their category of feed product. Cattle Horse Cat Dog Ferret Rabbit Selling Price $320 400 $360 120 $140 75 Cost $160 400 $320 90 $112. 45 Cost to Replace $170 325 $280 40 $98 25 The disposal costs are 20% of the selling price and the normal profit margin on all feed is 25% of the selling price. Required: Determine the reported inventory value assuming the lower of cost or market rule is Japplied to individual animal feed products.
Transcribed Image Text:2. Metro Animal Feeds has developed the following data in order to calculate the lower of cost or net realizable value for its products (in thousands). The products are listed within their category of feed product. Cattle Horse Cat Dog Ferret Rabbit Selling Price $320 400 $360 120 $140 75 Cost $160 400 $320 90 $112. 45 Cost to Replace $170 325 $280 40 $98 25 The disposal costs are 20% of the selling price and the normal profit margin on all feed is 25% of the selling price. Required: Determine the reported inventory value assuming the lower of cost or market rule is Japplied to individual animal feed products.
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