Gem Company measured inventory at the lower of cost and net realizable value. Data regarding the items in the inventory are: Markers Pens Highlighters Historical cost Selling price Estimated cost to complete Replacement cost Normal profit margin as a percentage of selling price 240,000 360,000 48,000 208,000 188,000 250,000 50,000 168,000 300,000 360,000 68,000 318,000 25% 25% 10% What is the measurement of the inventory? a. 720,000 b. 728,000 c. 676,000 d. 694,000

Gem Company measured inventory at the lower of cost and net realizable value. Data regarding the items in the inventory are: Markers Pens Highlighters Historical cost Selling price Estimated cost to complete Replacement cost Normal profit margin as a percentage of selling price 240,000 360,000 48,000 208,000 188,000 250,000 50,000 168,000 300,000 360,000 68,000 318,000 25% 25% 10% What is the measurement of the inventory? a. 720,000 b. 728,000 c. 676,000 d. 694,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Ace Company reported the following information for the current year: Sales Cost of goods sold: Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold Gross profit $ 417,000 $ 142,500 280,000 422,500 151,000 271,500 $ 145,500 The beginning inventory balance is correct. However, the ending inventory figure was overstated by $27,000. Given this information, the correct gross profit would be: Multiple Choice $118,500. $145,500. $172,500. $131.500
Ross Electronics has one product in its ending inventory. Per unit data consist of the following: cost, $20; selling price, $30; selling costs, $4. What unit value should Ross use when applying the lower of cost or net realizable value rule to ending inventory?
On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item as shown in Exhibit below. Item Inventory Quantity Unit Cost Price ($) Unit Market Price ($) MT22 1642 91 88 4WY09 5278 37 44 1GDS 8898 185 172
san
Presented below is information related to Lush Inc’s inventory: Determine the following:a) the net realizable value for each item, andb) The carrying value of each item under LCNRV.
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. Inventory Inventory Cost per Market Value per Unit Item Quantity Unit (Net Realizable Value) Birch 120 $150 $140 Cypress 90 120 130 Mountain Ash 200 110 100 Spruce 160 90 100 Willow 70 130 120 Inventory at the Lower of Cost or Market Inventory Total Cost Total Market Total LCM Item Birch $1 Cypress Mountain Ash Spruce Willow Total
The inventory of Longhorn Company at the end of the current year is to be recorded at the lower of cost and net realizable value. Item Unit Cost Estimated sales price Cost of sell A 1,100 120 180 30 B 1,500 110 140 20 C 1,200 150 170 30 D 1,800 140 190 30 E 1,700 130 200 40 Required: Determine the inventory value applying the lower of cost and net realizable value.
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.
Lower-of-Cost-or-Market 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 9. InventoryItem InventoryQuantity Cost perUnit Market Value per Unit(Net Realizable Value) Birch 49 $170 $165 Cypress 25 172 153 Mountain Ash 38 178 169 Spruce 19 250 241 Willow 39 242 219 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 $ $ $
Lower-of-Cost-or-Market 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 9. InventoryItem InventoryQuantity Cost perUnit Market Value per Unit(Net Realizable Value) Birch 24 $156 $151 Cypress 13 156 165 Mountain Ash 17 266 284 Spruce 25 115 139 Willow 9 193 169 Inventory at the Lower of Cost or Market Inventory Item Total Cost Total Market Total LCM Birch $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Cypress fill in the blank 4 fill in the blank 5 fill in the blank 6 Mountain Ash fill in the blank 7 fill in the blank 8 fill in the blank 9 Spruce fill in the blank 10 fill in the blank 11 fill in the blank 12 Willow fill in the blank 13 fill in the blank 14 fill in the blank 15 Total $fill in the blank 16 $fill in the blank 17 $fill in the blank 18
Basic inventory data for April 30 are presented below for a business that employs the lower-of-cost-or-market basis of inventory valuation to each category. a. Complete the table. Unit Market Total Lower of Cost or Market Unit Cost Price Total Cost Total Market Commodity Quantity Price 35 $55 $52 20 155 150 25 82 85 D. 40 58 55 Total b. Determine the amount of reduction in the inventory at April 30 attributable to market decline.
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 Exh Inventory Inventory Cost per Market Value per Unit Item Quantity Unit (Net Realizable Value) Birch 28 $82 $68 Cypress 8 137 128 Mountain Ash 48 106 102 Spruce 10 135 155 Willow 18 80 93 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