Data related to the inventories of XYZ Medical Supply are presented below: Surgical Equipment Surgical Supplies Selling price $260 $ 120 Cost 170 90 Replacement cost 240 80 Disposal cost 30 5 Normal gross profit 78 36 a. In applying the LCM rule, the inventory of surgical equipment would be valued at: A. $230 B. $240 C. $170 D. $152 b. In applying the LCM rule, the inventory of surgical supplies would be valued at: A. $115 B. $90 C. $80 D. $69 E. $79

Data related to the inventories of XYZ Medical Supply are presented below: Surgical Equipment Surgical Supplies Selling price $260 $ 120 Cost 170 90 Replacement cost 240 80 Disposal cost 30 5 Normal gross profit 78 36 a. In applying the LCM rule, the inventory of surgical equipment would be valued at: A. $230 B. $240 C. $170 D. $152 b. In applying the LCM rule, the inventory of surgical supplies would be valued at: A. $115 B. $90 C. $80 D. $69 E. $79

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

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

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

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 9MC: Estimates of price-level changes for specific inventories are required for which of the following...

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Subject: acounting
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.
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Suppose a company that handles medical supplies has these inventory records for October 2022: Date Item Quantity Per Unit Oct. 1 Beg. Inv. 150 $36.00 Oct. 4 Purchase 188 $35.50 Oct. 7 Sale 225 $72.00 Oct. 13 Purchase 165 $35.00 Oct. 19 Purchase 113 $34.40 Oct. 22 Sale 285 $72.75 Oct. 24 Purchase 150 $34.00 Oct. 28 Sale 83 $73.50 The company uses the periodic inventory method. Round answer to the nearest dollar. Ending Inventory using FIFO is Select one: O о O ☆ a. $6,101 b. $5,891 c. $4,335 d. $4,491 e. $4,647
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What is the beginning inventory? You left it blank. Direct Materials Conversion costs Beginning Inventory ? ? ? Add: Current costs 3798000 2160000 1638000 ($594000+$1044000) Total costs to account for (A) 3798000 2160000 1638000
Determine the cost assigned to ending inventory and to cost of goods sold using FIFO.
Splish Brothers, Inc. values its inventory at the lower-of-LIFO-cost-or-market. The following information is available from the company’s inventory records as of December 31, 2020. Item Quantity UnitCost ReplacementCost/Unit Estimated SellingPrice/Unit Completion & DisposalCost/Unit Normal ProfitMargin/Unit X490 8,976 $11.00 $10.52 $12.32 $2.64 $2.99 X512 4,356 6.16 6.60 7.83 0.22 1.58 X682 15,840 16.72 16.37 27.76 2.86 7.92 Z195 11,000 12.54 12.32 17.42 1.23 5.06 Z846 7,568 10.56 11.22 12.28 1.85 0.97 (a) Correct answer icon Your answer is correct. Calculate the lower-of-cost-or-market using the individual-item approach. (Round answers to 2 decimal places, e.g. 52.75.) (b) Partially correct answer icon Your answer is partially correct. Show the journal entries Splish Brothers, Inc. will…
Byron Company has five products in its inventory and uses the FIFO cost flow assumption. Specific data for each product are as follows: Estimated Cost of Disposal Product A B C D E Cost $90,000 110,000 60,000 100,000 105,000 B Selling Price $150,000 120,000 70,000 115,000 110,000 Required: 1. What is the correct inventory value, assu ing the LCNRV rule is applied to each item of inventory? Product Inventory Value A C D $20,000 15,000 5,000 5,000 8,000 E Total 2. What is the correct inventory value, assuming the LCNRV rule is applied to the total of inventory? losses relative to applying the rule to 3. Next Level Comment on any differences that result from applying the LCNRV nule to individual items compared to the total of inventory Applying the LCNRV rule to the total of inventory will result in The result occurs because the application of the LCNRV rule to groups of inventory allows price inventory valuations and the units
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