Valuing Inventory at Lower-of-Cost-or-Market Gard Inc. has compiled the following information related to its five products. Costs of disposal are estimated to be 10% of selling price, and gross profit is estimated to be 25% of the selling price. Determine the value of inventory applying the lower-of-cost-or-market rule to each individual inventory item. Note: Round each amount to the nearest dollar. #1 #2 #3 #4 #5 Estimated selling price $66 $76 $82 $100 $130 Original cost (LIFO) 45 48 60 63 90 Replacement cost 50 70 49 66 83 Inventory at the lower-of-cost-or-market $ (10) x $ (11) x $ (12) x $ (25) х $ (20) x
Valuing Inventory at Lower-of-Cost-or-Market Gard Inc. has compiled the following information related to its five products. Costs of disposal are estimated to be 10% of selling price, and gross profit is estimated to be 25% of the selling price. Determine the value of inventory applying the lower-of-cost-or-market rule to each individual inventory item. Note: Round each amount to the nearest dollar. #1 #2 #3 #4 #5 Estimated selling price $66 $76 $82 $100 $130 Original cost (LIFO) 45 48 60 63 90 Replacement cost 50 70 49 66 83 Inventory at the lower-of-cost-or-market $ (10) x $ (11) x $ (12) x $ (25) х $ (20) x
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Valuing Inventory at Lower-of-Cost-or-Market
Gard Inc. has compiled the following information related to its five products. Costs of disposal are estimated to be 10% of selling price, and gross profit is estimated to be 25% of the selling price. Determine the value of
inventory applying the lower-of-cost-or-market rule to each individual inventory item.
Note: Round each amount to the nearest dollar.
#1
#2
#3
#4
#5
Estimated selling price
$66
$76
$82
$100
$130
Original cost (LIFO)
45
48
60
63
90
Replacement cost
50
70
49
66
83
Inventory at the lower-of-cost-or-market $
(10) x $
(11) x $
(12) x $
(25) х $
(20) x](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5c2c6cbe-a317-431c-98a1-cc03aa19039b%2Fdb591556-b3a8-4a3c-89ce-8f4fc0b4eba1%2Fmujisjf_processed.png&w=3840&q=75)
Transcribed Image Text:Valuing Inventory at Lower-of-Cost-or-Market
Gard Inc. has compiled the following information related to its five products. Costs of disposal are estimated to be 10% of selling price, and gross profit is estimated to be 25% of the selling price. Determine the value of
inventory applying the lower-of-cost-or-market rule to each individual inventory item.
Note: Round each amount to the nearest dollar.
#1
#2
#3
#4
#5
Estimated selling price
$66
$76
$82
$100
$130
Original cost (LIFO)
45
48
60
63
90
Replacement cost
50
70
49
66
83
Inventory at the lower-of-cost-or-market $
(10) x $
(11) x $
(12) x $
(25) х $
(20) x
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