Consider the following information pertaining to OldWest's inventory:NetRealizableValue$1572644ProductRevolversQuantity Cost$12631541427SpursHats11At what amount should OldWest report its inventory?

Formula: Inventory value = Quantity x lower of cost or NRV

Consider the following information pertaining to OldWest's inventory: Net Realizable Value $157 Product Revolvers Quantity Cost 14 27 11 $126 31 Spurs Hats 26 54 44 At what amount should OldWest report its inventory?

Consider the following information pertaining to OldWest's inventory: Net Realizable Value $157 Product Revolvers Quantity Cost 14 27 11 $126 31 Spurs Hats 26 54 44 At what amount should OldWest report its inventory?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

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

A: Inventory Cost :— Inventory costs are the costs to a business associated with holding stock, or…

Q: Use the lower-of-cost-or-market rule to determine the value (in $) of the following inventory for…

A: Inventory: It includes all the raw materials, work in process, and finished goods that lies with a…

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

A: Lets understand the basics.As per IAS 2 "Inventory", inventory should be valued at lower of cost or…

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

A: Inventory refers to the value of stock which is the goods and materials quantity that a business…

Q: Using the following information, identify all acceptable balances for the ending inventory,…

A: Under GAAP, inventory is carried in the books of account at lower of its cost or net realizable…

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

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

A: As per US GAAP (Generally accepted accounting principles), inventory is required to valued at lower…

Q: Lower-of-Cost-or-Market Inventory On the basis of the following data: Inventory Quantity 40 37 35…

A: The lower cost or market method is considered an accounting principle that states that inventory…

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

A: Lower-of-cost-or-market value: The lower-of-cost-or-market value is a method which requires the…

Q: Lower-of-Cost-or-Net Realizable Value Method The following data refer to the Ian Company’s ending…

A: The lower-of-cost-or-net realizable value (LCNRV) method is a widely used accounting principle for…

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

A: inventory management is considered to be an important part for business. The inventory in accounting…

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

A: Lower-of-cost-or-market: The lower-of-cost-or-market (LCM) is a method which requires the reporting…

Q: Memphis Wholesale Market applies the lower of cost or net realizable valuation to individual…

A: The net realizable value is calculated as selling price minus costs to sell.

Q: On the basis of the following data, determine the value of the inventory at the…

A: Inventories are recognized lower of cost or market. This rule is applied to inventory item-wise.…

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

A: The lower cost or net realizable value method indicates that businesses should recognize the…

Q: On the basis of the following data: Product InventoryQuantity Cost perUnit Market Value per…

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: On the basis of the following data, determine the value of the inventory at the…

A: Note: Under the Lower of cost or Market method, inventory is valued at the lower of the Cost of 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: Winners Inc. has three items in its ending inventory. The company's inventory information is…

A: As per the Cost Concept of Accounting, assets are to be recorded at their cost at the time of…

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

A: According to IAS-2 “Valuation of inventory”, inventories are valued at lower of cost or net…

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: Lower-of-Cost-or-Market Method On the basis of the data shown below: Item InventoryQuantity…

A: If the value of the inventory falls below its original cost before a company can sell it, companies…

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

A: According to inventory valuation, inventory is valued at lower of cost or Net Realizable Value. The…

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: Use the lower-of-cost-or-market rule to determine the value (in $) of the following inventory for…

A: Solution:- Calculation of the value (in $) of the following inventory for Save-Mor Merchandisers as…

Q: Use the lower-of-cost-or-market rule to determine the value (in $) of the following inventory for…

A: Compare the cost and market value of each item and choose the lower value for each. Raincoats Total…

Q: Item No. 1320 1333 1426 1437 1510 1522 1573 1626 Quantity 1,500 1,200 1,100 1,300 1,000 800 3.300…

A: The term inventory costs refers to the costs which is associated with the business that are holding…

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: Lower-of-Cost-or-Market Inventory On the basis of the following data, determine the value of the…

A: Lower-of-cost-or-net realizable value: The lower-of-cost-or-net realizable value (LCNRV) is a method…

Q: Determine the value of the inventory at the lower of cost or market. Apply lower of cost or market…

A: Lower of Cost per Unit or Market Value per Unit As the name saying, we record inventory on lower of…

Q: The following information is taken from a company’s records. Applying the lower-of-cost-or-market…

A: Inventory is usually valued at its cost or net realizable value, whichever is lower. Cost includes…

Q: S At the end of the year, Randy's Parts Company had the following items in inventory: Item P1…

A: The inventory is a balnce sheet item that is shown at cost, howevere the inventory may be presented…

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

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: The following data refer to Issue Company’s ending inventory: Item code Quantity Unit…

A: Lower of cost or market value Small (100*56)=$5600 Medium (420*38)=$15960 Large…

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

A: The inventory can be valued using different methods. Using the lower of cost or net realizable value…

Q: Inventory Write-Down The following information is taken from Aden Company's records: Product Group…

A: The inventory can be valued using LCNRV or LCM by applying lowest cost from the inventory.

Q: Lower-of-Cost-or-Market Method On the basis of the data shown below: Item InventoryQuantity…

A: Calculation of value of inventory using lower of cost or market value:

Q: Data on the physical inventory of Ashwood Products Company as of December 31 follow: Description…

A: It is the stock held for sale to customers. The inventory comprises of raw materials, work in…

Q: 2. A company reported the following data related to its ending inventory: Product 849 Units…

A: Inventory refers to all goods and items available with the company for sale and to earn profit.

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

A: Lower-of-cost-or-market value: The lower-of-cost-or-market value is a method which requires the…

Q: A company uses ABC analysis to help manage its inventory. Its current stock of inventory reflects…

A: Using an ABC analysis, retailers may determine their most (and least) valued items by categorizing…

Q: Ayayai has the following individual inventory items at cost and net realizable value: Part Units…

A: According to inventory valuation, inventory is valued at lower of cost or net realizable value. The…

Q: Determine the value of the inventory at the lower of cost or market by applying lower of cost or…

Question

Consider the following information pertaining to OldWest's inventory:
Net
Realizable
Value
$157
26
44
Product
Revolvers
Quantity Cost
$126
31
54
14
27
Spurs
Hats
11
At what amount should OldWest report its inventory?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Skysong Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Item No. 1320 1333 1426 1437 1510 1522 1573 1626 Quantity 1,500 1,200 1,100 1,300 1,000 800 3,300 1,300 Cost per Unit $3.39 2.86 4.77 3.82 2.39 3.18 1.91 4.98 Cost to Replace $3.18 2.44 3.92 3.29 2.12 2.86 1.70 5.51 Estimated Selling Cost of Completion and Price Disposal $0.37 The amount of Skysong Company's inventory $ $4.77 3.71 5.30 3.39 3.45 4.03 2.65 6.36 From the information above, determine the amount of Skysong Company inventory. 0.53 0.42 0.27 0.85 0.42 0.80 0.53 Normal Profit $1.33 0.53 1.06 0.95 0.64 0.53 0.53 1.06
The following information is taken from a company’s records. Costper Unit Market valueper Unit Inventory Item 1 (10 units) $39 $38 Inventory Item 2 (22 units) 19 19 Inventory Item 3 (12 units) 9 11 Applying the lower-of-cost-or-market approach, what is the correct value that should be reported on the balance sheet for the inventory? $fill in the blank 1
The following inventory information is gathered from the accounting records of Tucker Enterprises: # of Units x Unit Cost = Total Beginning Inventory 4000 x 5 Purchases 6000 x 7 Sales 9000 x 10 Ending Inventory 1000 a. Calculate Ending Inventory # of Units Unit Cost Ending Inventory 1.FIFO 0 $- 2.LIFO 0 $- 3.Weighted Average Cost 0 $- $- $- $- b. Cost of Goods Sold # of Units # of Units Unit cost Unit cost Cost of Goods Sold 1.FIFO $- 2.LIFO $- 3.Weighted Average Cost $- $- 0 $- c.Gross profit using each of the following methods: Sales Cost of Goods Sold Gross Profit 1.FIFO $- $- $- 2.LIFO $- $- $- 3.Weighted Average Cost $- $- $-
Lower-of-Cost-or-Net Realizable Value Method The following data are taken from the Hilton Corporation’s inventory accounts: Item Code Quantity Unit Cost Net Realizable Value Product 1 XKE 100 $32 $28 XKF 400 43 44 Product 2 ZNJ 400 32 29 ZNS 300 43 48 Calculate the value of the company’s ending inventory using the lower-of-cost-or-net realizable method applied to each item of inventory. Applying the lower-of-cost-or-net realizable value method to each item of the inventory results in an ending inventory amount of $Answer
On the basis of the following data, determine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in Exhibit 9. InventoryItem InventoryQuantity Cost perUnit Market Value per Unit(Net Realizable Value) Birch 12 $253 $228 Cypress 18 43 48 Mountain Ash 12 279 262 Spruce 50 275 266 Willow 29 291 299 Inventory at the Lower of Cost or Market Inventory Item Total Cost Total Market Total Lower of C or M Birch $ $ $ Cypress Mountain Ash Spruce Willow Total $ $ $
Consider the following information pertaining to a company's inventory: Product Quantity Cost Net Realizable Value Revolvers 15 $ 128 $ 155 Spurs 28 27 22 Hats 11 58 48 At what amount should the company report its inventory? Multiple Choice $3,156 $3,469 $3,064 $3,314
A v2.cengagenow.com Lower-of-Cost-or-Market Method On the basis of the following data, determine the value of the inventory at the lower-of-cost-or-market by applying lower-of-cost-or-market to each inventory item, as shown in Exhibit 10. Market Value per Unit Item Inventory Quantity Cost per Unit (Net Realizable Value) JFW1 58 $29 $24 SAW9 119 15 20 Check My Work Previous Next All work saved. Save and Exit Submit Assignment for Grac %24
The inventory records of Sunshine company show the following data: UNITS UNIT COST ESTD. SALES PRICE COST OF TO SELL A 8,000 400 415 20 B 8,000 365 405 15 C 6,000 410 412 7 What amount of inventory will be presented in the statement of financial position under the lower of cost or NRV convention?
The following data refer to Cambridge Company’s ending inventory: Item Code Quantity Unit Cost Unit Market Small 120 $228 $232 Medium 420 152 176 Large 610 168 176 Extra-Large 220 268 256 How much is the inventory if the lower of cost or market rule is applied to each item of inventory?
Lower-of-Cost-or-Market Method On the basis of the following data, determine the value of the inventory at the lower-of-cost-or-market by applying lower-of-cost-or-market to each inventory item, as shown in Exhibit 10. Market Value per Unit Item Inventory Quantity Cost per Unit (Net Realizable Value) JFW1 150 $27 $31 SAW9 314 14 10 Feedback
[The following information applies to the questions displayed below.] A company reports inventory using the lower of cost and net realizable value (NRV). Below is information related to its year-end inventory. Inventory Quantity Unit Cost Unit NRV Furniture 170 $ 82 $ 97 Electronics 47 370 285 Record the adjustment for inventory. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Cost of Goods Sold Inventory
Data on the physical inventory of Katus Products Co. as of December 31 follow: Market Value per Unit (Net Realizable Value) $ 56 Inventory Item Inventory Quantity A54 37 C77 24 178 F66 30 132 H83 21 545 K12 375 Q58 90 18 S36 235 20 V97 140 Y88 744 17 Quantity and cost data from the last purchases invoice of the year and the next-to-the-last purchases invoice are summarized as follows: Last Next-to-the-Last Purchases Invoice Purchases Invoice Quantity Unit Purchased Cost Unit Inventory Item Quantity Purchased Cost $ 60 A54 30 40 $58 C7 25 174 15 180 F66 20 130 15 128 H83 547 15 540 K12 500 500 Q58 75 25 80 26 S36 256 4 260 V97 100 17 115 16 Y88 10 750 740 Instructions Determine the inventory at cost as well as at the lower of cost or market, using the first-in, first-out method. Record the appropriate unit costs on the inventory sheet and complete the pricing of the inventory. When there are two different unit costs applicable to an item: 1. Draw a line through the quantity and insert…