LCM method ? Financial accounting BrightWave Ltd. typically sells its product for $32 per unit, but due toincreased competition, the selling price has dropped to $26 per unit. Thecompany currently has 150 units in inventory, which were originallypurchased at $28 per unit. The replacement cost has now declined to $23per unit.At what value should BrightWave Ltd. report its inventory using the lower-of-cost-or-market (LCM) method?a) $3,450b) $3,975c) $4,200d) $4,500e) $3,750

Step 1: Definition of Lower-of-Cost-or-Market (LCM)The Lower-of-Cost-or-Market (LCM) method is a…

Answered: BrightWave Ltd. typically sells its…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 1CP: Bhushan Company has been using LIFO for inventory purposes because it would prefer to keep gross...

See similar textbooks

Similar questions

Marzan Company uses LIFO and a perpetual inventory system for its leading product, Z. Given the historical cost of product Z is $22, the selling price of product Z is $25, costs to sell product Z are $3, the replacement cost for product Z is $21, and the normal profit margin is 40% of sales price, what is the amount that should be used to value the inventory under the lower-of-cost-or-market method? O $18 $20 $21 $22
Calculate the value of the company's inventory on this accounting question
Value of inventory?
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 Black’s ending inventory.
Ross Electronics has one product in its ending inventory. Per unit data consist of the following: cost, $33; replacement cost, $31; selling price, $43; selling costs, $7. The normal profit is 20% of selling price.What unit value should Ross use when applying the lower of cost or market (LCM) rule to ending inventory?
Please solve this question
Flint Inc. has provided you with the following information. This company purchases Its Inventory from a supplier for cash and has only cash sales. Fint uses the average cost formula in a perpetual Inventory system. Increased competition has recently reduced the price of the product Date Apr. 1 6 8 15 20 27 Explanation Beginning inventory Purchases Sales Purchases Sales Purchases Units 50 Date 110 (130) 120 (120) 20 To record als Unit Cost $82 [To record coat of good old [To record sales) 90 To record the Inventory sold 71 Prepare all joumal entries for the month of April for Filint. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Do not round intermediate calculations. Round answers to 2 decimal places, eg. 5,275.25. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. Account Titles…
A company's normal selling price for its product is $26 per unit. However, due to market competition, the selling price has fallen to $21 per unit. This company's current FIFO inventory consists of 260 units purchased at $22 per unit. Net realizable value has fallen to $19 per unit. Calculate the value of this company's inventory at the lower of cost or market. Multiple Choice $4,890. $5,720. $5,040. $5,460. $4.940.
Swing Ltd uses FIFO for its inventory, which is valued at $21,000. It is considering a change to moving weighted average, which would change the valuation of inventory to $22,500. Which of the following would be decreased by the change? a.Cost of goods sold b.Sales c.Liabilities d.Withdrawals
A company's normal selling price for its product is $23 per unit. However, due to market competition, the selling price has fallen to $18 per unit. This company's current FIFO inventory consists of 230 units purchased at $19 per unit. Net realizable value has fallen to $16 per unit. Calculate the value of this company's inventory at the lower of cost or market. a. $3,780 b. $3,630 c. $4,370 d. $4,140 e. $3,680
Monty Corporation is a multi-product firm. The following information concerns one of its products, the Trinton: Price/ Date Transaction Quantity Cost Jan. 1 Beginning inventory 2,000 $14 Feb. 4 Purchase 2,880 Feb. 20 Sale 3,340 Apr. 2 Purchase 4,080 Nov. 4 Sale 3,000 དྷྱ ༈ ཨྰཿ རྨུ 8 16 32 21 (a) * Your answer is incorrect. Calculate cost of goods sold, assuming Monty uses a periodic inventory system and FIFO cost formula.
A company had been selling its product for $32 per unit, but recently lowered the selling price to $21 per unit. The company's current inventory consists of 230 units purchased at $28 per unit. The market value of this inventory is currently $ $19 per unit. At what amount should the company's inventory be reported on the balance sheet?[Subject = Cost Account]

SEE MORE QUESTIONS

Recommended textbooks for you

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS