ALOHA Company determined the following information for an inventory at year end. Historical Cost P 2,000,000 Current Replacement Cost P 1,400,000 Net Realizable Value P 1,800,000 Net Realizable Value less a normal profit margin P 1,700,000 Fair Value P 1,900,000 What amount should be reported as inventory at year end? a. P 1,400,000 b. P 1,700,000 c. P 1,800,000 d. P 1,900,000

Q: Current Attempt in Progress Presented below is information related to Kingbird Company. Cost Retail…

A: Lower of Cost or Market (LCM) is an accounting principle used to value inventory at the lower of its…

Q: Orange Co. uses the retail inventory method to estimate its inventory for interim statement…

A: Inventory is the current asset of the company that includes the raw materials which are required to…

Q: TB MC Qu. 8-111 (Static) A company has the following information available... A company has the…

A: According to the given question, we are required to compute the cost of inventory or find the…

Q: l profit margin 2,400   a. Determine the net realizable value under the LCNRV rule. b. Determine…

A: Net Realizable Value:  It refers to the amount which is expected to be collected by the firm from…

Q: An analysis of the inventory owned by Owens Company as of the Company's fiscal closing date is shown…

A: Inventory includes both raw materials for manufacturing and finished products for sale. Inventory is…

Q: Ivanhoe Company uses the conventional retail method to determine its ending inventory at cost.…

A: The conventional retail method refers to the inventory valuation method which compares the purchase…

Q: Compute the lower-of-cost-or-net realizable value valuation for Gantner Company's total inventory…

A: Inventory valuation is the process of computing the economic value of the inventory purchased or the…

Q: The inventory and purchases data of UNIWIDE Company for the last quarter of 2021 are as follows:…

A: Under FIFO method the oldest products in inventory have been sold first.

Q: Red Company reported the following information for its two items of inventory on December 31, Year…

A: The concept for valuing inventory is to use the lower of cost or net realizable value (NRV) to…

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: Record the journal entry required for each year, 2018 through 2023, to adjust the allowance to…

A: The inventory that is sold or distributed and that has been purchased as finished goods or requires…

Q: Give answer

A: Step 1: Introduction to the Inventory TechniqueThe lower cost or market (LCNRV) is an inventory…

Q: 6. MNO Company is preparing the annual financial statements dated December 31, 2022. Information…

A: NRV = NRV is stood for Net realisable Valua. the value for which an asset can be sold, minus the…

Q: Lower-of-Cost-Net-Realizable-Value Method  The following data are taken from the Browning…

A: INVENTORY VALUATIONInventory Valuation is a Method of Calculation of Value of Inventory at the End…

Q: Lower-of-Cost-or-Market Method On the basis of the data shown below: Inventory Cost per Market Value…

A: The principle is inventory should be valued at lower or cost of reliasable value which ever is lower…

Q: The Kroger Company Net sales Cost of sales (using LIFO) Year-end inventories using FIFO Year-end…

A: Inventory turnover ratio indicates the number of times the inventory was sold. It is an efficiency…

Q: Compute for the cost of ending inventory using average cost retail method. " The following…

A: Inventory that is left after the sale is known as ending inventory.

Q: Given the following:   Number purchased Cost per unit Total January 1 inventory   30     $ 5     $…

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

Q: Lower-of-Cost-or-Net Realizable Value Method The following data are taken from the Simpson…

A: Inventory valuationInventory valuation method is an accounting practice that is followed by each and…

Q: What amount should ABC report its total cost of inventory on the 12/31/2020 Balance Sheet?

A: The inventory data for ABC company on 12/31/2020 in table format. The value reported is the lower of…

Q: he XYZ Company completed the following perpetual inventory transactions: May 1Beginning inventory20…

A: LIFO method under perpetual inventory method : In this method, the costs of last purchased items are…

Q: RJ Corporation has provided the following information about one of its inventory items: Number of…

A: LIFO method is one of the methods of inventory valuation in which it is assumed that recent or new…

Q: Tatum Company has four products in its inventory. Information about ending inventory is as follows:…

A: Lower of cost or market value states that business entity should record the inventory at whichever…

Q: 6. MNO Company is preparing the annual financial statements dated December 31, 2022. Information…

A: As per our guidelines, in case of multiple questions, we are only supposed to answer the first…

Q: The accountant for Murphy Company prepared the following analysis of its inventory at year end:…

A: The question is based on the concept of Cost Accounting. inventory should be valued at a lower of…

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.