Flint Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company's inventory records as of December 31, 2020. Replacement Estimated Selling Item Quantity Unit Cost Cost/Unit Price/Unit Completion & Disposal Cost/Unit Normal Profit Margin/Unit A 1,400 $8.48 $9.49 $11.87 $1.70 $2.03 B 1,100 9.27 8.93 10.62 1.02 1.36 C 1,300 6.33 6.10 8.14 1.30 0.68 D 1,300 4.29 4.75 7.12 0.90 1.70 E 1,700 7.23 7.12 7.57 0.79 1.13 Greg Forda is an accounting clerk in the accounting department of Flint Co., and he cannot understand why the market value keeps changing from replacement cost to net realizable value to something that he cannot even figure out. Greg is very confused, and he is the one who records inventory purchases and calculates ending inventory. You are the manager of the department and an accountant. (a) Calculate the lower-of-cost-or-market using the individual-item approach. Lower-of-Cost-or-Market (Per unit basis) Item A $ Item B $ Item C $ Item D $ Item E $

Flint Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company's inventory records as of December 31, 2020. Replacement Estimated Selling Item Quantity Unit Cost Cost/Unit Price/Unit Completion & Disposal Cost/Unit Normal Profit Margin/Unit A 1,400 $8.48 $9.49 $11.87 $1.70 $2.03 B 1,100 9.27 8.93 10.62 1.02 1.36 C 1,300 6.33 6.10 8.14 1.30 0.68 D 1,300 4.29 4.75 7.12 0.90 1.70 E 1,700 7.23 7.12 7.57 0.79 1.13 Greg Forda is an accounting clerk in the accounting department of Flint Co., and he cannot understand why the market value keeps changing from replacement cost to net realizable value to something that he cannot even figure out. Greg is very confused, and he is the one who records inventory purchases and calculates ending inventory. You are the manager of the department and an accountant. (a) Calculate the lower-of-cost-or-market using the individual-item approach. Lower-of-Cost-or-Market (Per unit basis) Item A $ Item B $ Item C $ Item D $ Item E $

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 13E: Retail Inventory Method The following information relates to the retail inventory method used by...

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