A company's normal selling price for its product is $29 per unit. However, due to marketcompetition, the selling price has fallen to $24 per unit. This company's current Inventoryconsists of 110 units purchased at $25 per unit. Replacement cost has fallen to $22 per unit.Calculate the value of this company's Inventory at the lower of cost or market.a. $2,520.b. $2,750.c. $2,640.d. $2,420.e. $2,370.

Lower of Market - $24 or Cost - $22 Cost of Inventory = No. of Units x Lower of Cost or Market…

Answered: A company's normal selling price for…

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 67P

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Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net realizable value of 300, a normal profit margin of 35, and a current replacement cost of 250. Determine the amount per unit that should be used as the market value to apply the lower of cost or market rule to determine Blacks ending inventory.
Sienna Company uses the FIFO cost flow assumption. Sierra has inventory with a selling price of 100, packaging costs of 5, and transportation costs of 10. Siennas normal profit margin is 20. However, due to limited supply of the product from the manufacturer, it would cost Sienna 80 to replace the inventory. What amount should be used as the market value? a. 65 b. 80 c. 85 d. 100
The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
When prices are falling (deflation), which costing method would produce the highest gross margin for the following? Choose first-in, first-out (FIFO); last-in, first-out (LIFO); or weighted average, assuming that B62 Company had the following transactions for the month. Calculate the gross margin for each of the following cost allocation methods, assuming B62 sold just one unit of these goods for $400. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
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a company normal selling price for its product is 29 per unit however due to the market competition the selling price has fallen to 24 per unit this company current FIFO inventory consist of 290 units purchased at a 25 per unit net realizable value has fallen to 22 per units calculate the value of this companys inventory at the lower of cost or market 7250 6960 6480 6380 6330
21. A company has two pieces of Inventory, A and B. Inventory A cost the company P40 per unit and can now be sold for P60 per unit after incurring P15 in selling expenses per unit. It has a replacement cost of P35 per unit and a normal profit of P4 per unit. Inventory B cost the company P52 per unit and can now be sold for P63 per unit after the incurring P15 in selling expenses per unit and a normal profit of P4 per unit. If the company uses the retail method to value its inventory, how much should be reported on the balance sheet for these items? a. 90 b. 89 c. 86 d. 88 D00 000
choose correct options in detailed
A manufacturer has the following per-unit costs and values for its sole product: Cost $10.00 5.50 Current replacement cost Net realizable value 6.00 Net realizable value less normal profit 5.20 margin Under the first-in first-out (FIFO) cost method, what is the per-unit carrying value of inventory in the manufacturer's statement of financial position? O 55.20 $5.50 $6.00 $10.00
Provide Answer please
Ray Corporation has two products in its ending inventory, each accounted for at the lower of cost or market. A profit margin of 30% on selling price is considered normal for each product. Specific data with respect to each product follows: Product #2 $ 18 Product #1 Historical cost $10 Replacement cost 11 14 Estimated cost to dispose Estimated selling price 20 33 In pricing its ending inventory using the lower-of-cost-or-market, what unit values, rounded to the nearest dollar, should Oslo use for products #1 and #2, respectively? Example of Answer: 4000 (No comma, space, decimal point, or $ sign) Product 1 = Product 2 =
Ross Electronics has one product in its ending inventory. Per unit data consist of the following: cost, $24; replacement cost, $22; selling price, $34; selling costs, $5. The normal profit is 25% of selling price.What unit value should Ross use when applying the lower of cost or market (LCM) rule to ending inventory?

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