Data related to the inventories of Tesla are presented below: Selling price Cost Costs to sell Surgical Equipment $269 164 20 Surgical Supplies $ 138 96 14 Rehab Equipment $ 341 268 25 Rehab Supplies $164 157 14 In applying the lower of cost or net realizable value rule, the inventory of surgical equipment would be valu

Data related to the inventories of Tesla are presented below: Selling price Cost Costs to sell Surgical Equipment $269 164 20 Surgical Supplies $ 138 96 14 Rehab Equipment $ 341 268 25 Rehab Supplies $164 157 14 In applying the lower of cost or net realizable value rule, the inventory of surgical equipment would be valu

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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Similar questions

The following information is taken from a company’s records. Applying the lower-of-cost-or-market approach, what is the correct value that should be reported on the balance sheet for the inventory? Cost per Unit Market Value per Unit Inventory item 1 (10 units) $ 36 $ 35 Inventory item 2 (25 units) $ 20 $ 20 Inventory item 3 (12 units) $ 6 $ 8 Pick the lower of the two and multiple by the number of units.
Byron Company has five products in its inventory and uses the FIFO cost flow assumption. Specific data for each product are as follows: 1. what is the correct inventory value assuming the LCNRV rule is applied to each item of inventory? 2. What is the correct inventory value assuming the LCNRV rule is applied to the total of inventory? 3. Next Level Comment on any differences that result from applying the LCNRV rule to individual items coinpared to the total of inventory.
Wildhorse's Gift Shop uses a perpetual inventory system and the FIFO cost formula for valuing inventory. The company is now in the process of comparing the cost of its inventory with its net realizable value. The following data are available at Wildhorse's Gift Shop's year end, December 31: Clothing Units Unit Cost 91 $8 76 20 2017 Greeting cards 47 4 60 12 Jewellery Net Realizable Value per Unit Stuffed toys $6 27 5 38
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.
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 10. Product InventoryQuantity Cost PerUnit Market Value per Unit(Net Realizable Value) Class 1: Model A 16 $162 $169 Model B 32 190 198 Model C 34 152 148 Class 2: Model D 31 298 309 Model E 42 72 78 Question Content Area a. Determine the value of the inventory at the lower of cost or market applied to each item in the inventory. Inventory at the Lower of Cost or Market Product InventoryQuantity Costper Unit Market Valueper Unit(Net Realizable Value) Cost Market Lower of Cost or Market Model A fill in the blank 1b67cb01c017023_1 $fill in the blank 1b67cb01c017023_2 $fill in the blank 1b67cb01c017023_3 $fill in the blank 1b67cb01c017023_4 $fill in the blank 1b67cb01c017023_5 $fill in…
Jenks Company developed the following information about its inventories in applying the lower-of-cost-or-net-realizabl e-value(LCNRV) basis in valuing inventories: Product Cost NRV A $114,000 $120,000 B 80,000 76,000 C 160,000 162,000 After Jenks applies the LCNRV rule, the value of the inventory reported on the balance sheet would be
Ames Trading Company has the following products in its ending inventory Cost per Unit Product Mountain bikes. Skateboards Gliders Inventory Items Quantity 12 22 12 Mountain bikes Skateboards Gliders $ 580 330 960 Compute lower of cost or market for inventory applied separately to each product. Units Market per Unit $ 510 370 910 Per Unit Cost Market Cost Total Market LCM applied to each product
Ayayai has the following individual inventory items at cost and net realizable value: Part Units Unit Cost X123 Y135 Z246 A369 B258 (a) 21 30 27 9 14 $4.80 3.15 4.60 1.10 2.25 NRV per Unit $4.30 3.90 5.35 1.10 1.95 Determine the lower of cost and net realizable value of the ending inventory for Ayayai. (Round answers to 2 decimal places, e.g. 15.25.) Lower of cost and net realizable value $
Blossom Company sells three different categories of tools (small, medium, and large). The cost and net realizable value of its inventory of tools are as follows. Net Realizable Cost Value Small $63,300 $59,600 Medium 289,600 261,000 Large 151,300 172,500 Determine the value of the company's inventory under the lower-of-cost-or-net realizable value approach. Total inventory value $
Suppose that Ivanhoe Depot developed the following information about its inventories in applying the lower-of-cost-or-net- realizable-value (LCNRV) basis in valuing inventories: Product A B C Cost $119000 83000 166000 NRV $125000 79000 168000 After Ivanhoe Depot applies the LCNRV rule, the value of the inventory reported on the balance sheet will be $368000. O $364000. O $372000. O $376000.
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
Ames Trading Co. has the following products in its ending inventory. Product Mountain bikes Skateboards Gliders Quantity Cost per Unit 15 30 29 $710 260 810 Market per Unit $660 290 730 Compute lower of cost or market for inventory applied separately to each product. Per Unit Total LCM applied to Inventory Items Units Cost Market Cost Market each product Mountain bikes Skateboards Gliders