Compute the Lower of Cost or Market (LCM) for R.A.Mona's Pet Shop. Use the most conservative method of LCM. Inventory Items Units Puppies Turtles Fish Parrots Cats $4,250 $2,430 Mona's Pet Store $2,000 $2,200 11 12 40 10 26 Cost 50 None of the choices are correct. Per unit 25 8 100 10 Market 100 201 7 250 5 Total Total Cost Market

Compute the Lower of Cost or Market (LCM) for R.A.Mona's Pet Shop. Use the most conservative method of LCM. Inventory Items Units Puppies Turtles Fish Parrots Cats $4,250 $2,430 Mona's Pet Store $2,000 $2,200 11 12 40 10 26 Cost 50 None of the choices are correct. Per unit 25 8 100 10 Market 100 201 7 250 5 Total Total Cost Market

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Bahrain Specialist Hospital has recently hired you to improve their inventory management for some of the mostly costly medicines they use. You decide that the best method to use is the EOQ. After some analysis and research you gather the following information: Yearly sales 3,855 Cost of placing order 121 Carrying costs per order 36 Based on this calculate the EOQ
2. Assume that Tipton’s wallpaper inventory at the time of the closure decision amounted to $23,700. How would you have treated this additional information in making the decision? 3. What advantages might Internet- and magazine-based firms have over Tipton that would allow these organizations to offer deeply discounted prices—prices far below what Tipton can offer?
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tem Units Cost Market Car audio equipment Speakers 335 $ 90 $ 98 Stereos 250 111 100 Amplifiers 316 86 95 Subwoofers 194 52 41 Security equipment Alarms 470 150 125 Locks 281 93 84 Cameras 202 310 322 Binocular equipment Tripods 175 70 84 Stabilizers 160 97 105 Required:1. Calculate the lower of cost or market for the inventory applied separately to each item.2. If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account.
Problem #5 (Lower of Cost or Market - LCM) Melissa's Wing-Bang Washing Machine Mfg. makes washing machines. Most of Melissa's washing machines are standard models and are sold on the basis of catalog prices. The company has adopted a lower of FIFO cost or market approach applied to inventory on an individual item basis. At December 31, 2021 the following finished washing machines appear in the company's inventory. Finished Washers - Models --> A $ 700 $ B D 800 $ 2021 catalog selling price FIFO cost per inventory list Est. cost to re-manufacture (REPCO) Costs of disposal 750 $ 1,000 2$ 460 $ 465 $ 640 $ 740 440 $ 480 $ 630 $ 810 150 $ 160 $ 180 $ 200 "Normal" gross profit margin # of units in 12-31-21 inventory 15% 20% 22% 24% 400 200 100 100 Calculate the: a. "Designated" market for each item b. LCM unit cost assigned to each item @ 12-31-21 c. LCM total inventory value d. Total amount of the inventory "write-down" @ 12-31-21
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Recording inventory with discounts available. Greystoke, Inc. is owned by twin brothers. On most issues, they agree completely with eac other. One particular problem, though, is giving them trouble. Galen wants to use the grom method for recording purchases of merchandise with discounts while Gordon thinks the on logical method is the net method. To help them resolve their problems, they need to see th information each method gives them and get some feedback on what they can learn from eac method. You have the honor of being chosen. Provide journal entries to record each activity fe both the gross and net methods. Be sure to label the methods. The entries can be side by side fe the two inventory methods. Assume the brothers use the periodic inventory system. May 2 Gross Purchased and received $15.000 of merchandise, terms 1/15, n/45. lurchase 15,000 cush 14,850 Net 15,000 Purchas 14,85d Acct Pay Purchas dis 150 us5 May 5 Gross Returned merchandise with a cost of $500 because we could…
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Painter Inc. sells several types of paint. Due to the low demand, it would be testing its inventory for impairment. It gathered the following information: No. Brand Unit Selling Price Ave. Unit Type Size Units Unit Cost (Updated) Cost to Sell 001 A Water-based 4-liter 10 P 350 P 400 P 70 002 A Water-based 16-liter 20 1,150 1,300 250 003 A Acrylic 16-liter 20 1,200 1,700 300 004 B Water-based 16-liter 5 1,075 1,250 200 005 B Acrylic 4-liter 15 400 600 70 006 B Acrylic 16-liter 10 1,250 2,000 250 How much should be reported as loss from inventory write-down?
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Note:- • Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. • Answer completely. • You will get up vote for sure.