A firm utilizes a periodic inventory cost system with a Last-In, First-Out (LIFO) cost flow assumption. What does the firm report as the lower of cost or market for the following two items?                            Item A Item B Costs to have inventory ready for sale $4 $0 Current Cost to Replace $50 $55 Estimated Selling Price $62 $70 Estimated Normal Profit Margin $12 $12 Cost per the accounting record $60 $60       Group of answer choices Item A: $46, Item B: $55 Item A: $46, Item B: $58 Item A: $46, Item B: $60 Item A: $50, Item B: $55 Item A: $50, Item B: $58

Q: Using the lower of cost or market, what should the total inventory value be for the following items:…

A: Item A cost=Quantity×Cost per unit=186×$6=$1,116

Q: Information pertaining to the inventory of Palette Company follows. LIFO Cost Selling Price…

A: To calculate the lower-of-cost-or-market (LCM) value for each individual item and for each inventory…

Q: Determine the unit value that should be used for inventory costing following…

A: Inventory is valued using lower cost or market value. market value  is determined by a lower of…

Q: answer must be correct or i will give down vote

A: Step 1: CalculationsItem No.Quantity (g)Cost per Unit ( e )Cost to Replace ( c)Estimated Selling…

Q: provide answer please as per as posible fast and dont use ai

A: We can explain further as follows;1. Lower-of-Cost-or-Market (LCM) Valuation for Wildhorse Co.'s…

Q: Give correct solution

A: Cost  Market  Lower of cost or market  Number of units  Total LCM Part A         5.00          4.50…

Q: If the cost of an item of inventory is $52.00 and the current replacement cost is $70.00, what is…

A: As per lower of cost or market price method, we need to record the inventory at the lowest value of…

Q: Crane Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an…

A: Lower-of-cost-or-market = Lower of cost and Net realizable value where, Net realizable value =…

Q: Splish Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an…

A: If current replacement cost is between Ceiling (NRV) and floor value (NRV-normal profit) then Market…

Q: You are provided with the following information for Bramble Inc., which purchases its inventory from…

A: The journal entries are prepared to record the transactions on regular basis. The average cost per…

Q: 4. Given the following information for the Network Company: Date December 31, 2018 December 31, 2019…

A: Method to be recorded = Allowance method of recording lower of cost or market in use

Q: In a period of rising costs, which inventory valuation method would a company likely choose if they…

A: The objective of the question is to identify the inventory valuation method that would result in the…

Q: I want the correct answer

A: According to the lower of cost or market rule, inventory is recorded at the lower of either its…

Q: Inventory Stiles Corporation uses the LIFO cost flow assumption and is in the process of applying…

A: LIFO: LIFO stands for Last-In, First-Out. In this method inventory purchased last will be sold out…

Q: Applying the lower of cost or market to each item of inventory, what should the total inventory…

A: The objective of the question is to calculate the total inventory value by applying the lower of…

Q: See the picture for other details. choose the letter of answer Using perpetual inventory system…

A: Perpetual inventory system is an inventory system in which all sales and purchases are recorded on…

Q: Smmons Inc. uses the lower of cost on meket method to valesinventory that is accounted or using he…

A: Inventory valuation method includes: First-in, First-Out (FIFO) Last-in, Last-Out (LIFO) Average…

Q: Monty Corporation is a multi-product firm. The following information concerns one of its products,…

A: Under the periodic inventory system, a company counts its physical stocks at periodic intervals and…

Q: i need the answer quickly

A: Lower of cost or market method of inventory valuationUsing the Lower of cost or market method of…

Q: Whispering Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on…

A: Inventory refers to the stock of goods, raw materials, work- in- progress, or finished products…

Q: answer must be in proper format if that ok i will give upvote

A: The lower-of-cost-or-market (LCM) method is an inventory valuation approach that companies use to…

Q: Garcia Company is trying to decide whether to purchase identical inventory from one of the following…

A: Under F.O.B. shipping point, shipping cost is paid by the buyer. Under F.O.B. destination, shipping…

Q: Company Z had the following information: inventory at cost of $5,100, selling value of inventory of…

A: Businesses need to analyze costs in order to determine profitability, establish prices, decide what…

Q: Ruth is studying the working papers from her client's 2025 income statement because her manager…

A: Under the standard costing system, the variances related to production costs are adjusted with the…

Q: Using the LIFO​ method, calculate the cost of ending inventory and cost of goods sold for Cambell…

A: The question is based on the Concept of Cost Accounting.

Q: Lower-of-Cost-or-Market InventoryOn the basis of the following data, determine the value of the…

A: Inventory of a company is recorded at cost or market price, whichever is lower. Total cost price is…

Q: iven the following data, calculate the cost of ending inventory using the average cost method.…

A: Inventory valuation:          For calculation of accurate net income, ascertainment of accurate…

Q: On the basis of the following data, what is the value of the total inventory at the lower of cost or…

A: Calculation of Value Of Total Inventory  Item    Product C   Product D   Total    Inventory Qty…

Q: On the basis of the data shown below: Item Inventory Quantity Cost per Unit Market Value per Unit…

A: Inventory valuation is referred to as that method which helps in assigning a monetary value to the…

Q: Presented below is information related to Coronado Inc's inventory, assuming Coronado uses…

A: Ceiling = Selling price - cost to distribute Floor = Selling price - cost to distribute - Normal…

Q: Hunt Enterprises has the following inventory information available: Product Category Cost Selling…

A: Under lower of cost or market methods, the business records the inventory at the lower value…

Q: Sheffield Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on…

A: Item No.  Cost to replace in $    (a)  (b)** in $      (c) in $    (d) in $  Cost per unit…

Q: A manufacturer has the following per-unit costs and values for its sole product: Cost $10.00 5.50…

A: The inventory is valued using the FIFO method, LIFO method, weighted average method, or specific…

Q: Ivanhoe Company uses LIFO and a perpetual inventory system for its leading product, Z. Given the…

A: Net realizable value means the amount that could be received after deducted all incidental expenses…

Q: d The records of Cordova Corp. showed the following transactions, in the order given, relating to…

A: Under a periodic inventory system cost of goods sold will be calculated at the end of the period…

Q: Applying the lower-of-cost-or-market method to each item of inventory, what should the total…

A: Step 1: Since the valuation of Inventory is the lower of cost or market value, we just need to…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.