Gil Co. purchased four items of inventory at a bulk price of P9,000,000. The fair value of each item of inventory purchased are as follows: A-P4,000,000, B-P3,000,000, C-P2,000,000, D – P1,000,000. How much is the cost to be allocated to Inventory C?
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- Gil Co. purchased four items of inventory at a bulk price of P9,000,000. The fair value of each item of inventory purchased are as follows: A- P4,000,000, B-P3,000,000, C-P2,000,000, D - P1,000,000. How much is the cost to be allocated to Inventory C?APOL Company provided the following information related to the ending inventory of its Product X: Historical Cost – P6,800; Replacement cost – P7,000; Selling Price – P10,000; Cost to sell – P1,200; Cost to complete – P1,500. APOL measures its inventory at lower of cost and net realizable value. At what amount should the company’s inventory be reported in its Statement of Financial Position? 7,300 7,000 6,800 5,500The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Product A B C D E Product A Costs to sell consist of a sales commission equal to 10% of selling price and shipping costs equal to 5% of cost. Required: What unit value should Royal Decking use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule to units of ending inventory? BUDE Cost $ 180 220 160 140 90 C Per Unit Selling Price $ 200 240 220 240 125 Cost NRV Per Unit Inventory Value
- Royal Crown Corp. has the following information to an inventory: Materials -P800,000; Storage cost of finished goods- P 150,000; Delivery to customers-P30,000, Irrecoverable purchase taxes - P83,000. At what amount should the inventory be measured?APOL Company provided the following information related to the ending inventory of its Product X: Historical Cost – P6,800; Replacement cost - P7,000; Selling Price P10,000; Cost to sell - P1,200; Cost to complete - P1,500. APOL measures its inventory at lower of cost and net realizable value. At what amount should the company's inventory be reported in its Statement of Financial Position? O7,300 O 7,000 6,800 5.500 Answer not given O OOAPOL Company provided the following information related to the ending inventory of its Product X: Historical Cost – P6,800; Replacement cost - P7,000; Selling Price - P10,000; Cost to sell - P1,200; Cost to complete - P1,500. APOL measures its inventory at lower of cost and net realizable value. At what amount should the company's inventory be reported in its Statement of Financial Position? 7,300 O 7,000 6,800 5,500 Answer not given
- Palmquist Company has five different inventory items and applies the inventory valuation rules on an individual item basis. The normal markup on all items is 20% of cost. The following information is obtained from the company’s records: Item Units Cost Replacement Cost Net Realizable Value 1 500 $10.00 $ 9.10 $ 9.20 2 400 8.00 8.10 7.80 3 300 15.00 13.50 14.00 4 200 18.00 12.00 17.00 5 100 25.00 25.50 25.30 Required: 1. Assume that Palmquist uses the FIFO cost flow assumption. Compute the correct inventory value under the lower of cost or net realizable value rule. Round your answers to the nearest cent.Palmquist Company has five different inventory items and applies the inventory valuation rules on an individual item basis. The normal markup on all items is 20% of cost. The following information is obtained from the company’s records: Item Units Cost Replacement Cost Net Realizable Value 1 500 $10.00 $ 9.10 $ 9.20 2 400 8.00 8.10 7.80 3 300 15.00 13.50 14.00 4 200 18.00 12.00 17.00 5 100 25.00 25.50 25.30 Required: 1. Assume that Palmquist uses the FIFO cost flow assumption. Compute the correct inventory value under the lower of cost or net realizable value rule. 2. Assume that Palmquist uses the LIFO cost flow assumption. Compute the correct inventory value under the lower of cost or market rule 3. Assume that Palmquist uses IFRS. Compute the correct inventory value under the lower of cost or net realizable value rule. 4. Compute the total inventory value if the lower of cost or market is applied to each individual item.Palmquist Company has five different inventory items and applies the inventory valuation rules on an individual item basis. The normal markup on all items is 20% of cost. The following information is obtained from the company’s records: Item Units Cost Replacement Cost Net Realizable Value 1 500 $10.00 $ 9.10 $ 9.20 2 400 8.00 8.10 7.80 3 300 15.00 13.50 14.00 4 200 18.00 12.00 17.00 5 100 25.00 25.50 25.30 Required: 1. Assume that Palmquist uses the FIFO cost flow assumption. Compute the correct inventory value under the lower of cost or net realizable value rule. Round your answers to the nearest cent. Item Lower ofCost or NRV 1 $ fill in the blank 1 2 fill in the blank 2 3 fill in the blank 3 4 fill in the blank 4 5 fill in the blank 5 Compute the total inventory value if the lower of cost or net realizable value is applied to each individual item. $ fill in the blank 6 2. Assume that Palmquist uses the LIFO cost flow assumption.…
- 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 unitsalmquist Company has five different inventory items and applies the inventory valuation rules on an individual item basis. The normal markup on all items is 20% of cost. The following information is obtained from the company’s records: Item Units Cost Replacement Cost Net Realizable Value 1 500 $10.00 $ 9.10 $ 9.20 2 400 8.00 8.10 7.80 3 300 15.00 13.50 14.00 4 200 18.00 12.00 17.00 5 100 25.00 25.50 25.30 Required: 1. Assume that Palmquist uses the FIFO cost flow assumption. Compute the correct inventory value under the lower of cost or net realizable value rule. Round your answers to the nearest cent. Item Lower ofCost or NRV 1 $ fill in the blank 1 2 fill in the blank 2 3 fill in the blank 3 4 fill in the blank 4 5 fill in the blank 5 Compute the total inventory value if the lower of cost or net realizable value is applied to each individual item. $ fill in the blank 6 2. Assume that Palmquist uses the LIFO cost flow assumption.…Entity A has a beginning inventory of P340,000. During the period Entity A purchased inventories costing P990,000. Freight paid on the purchase totaled P40,000. The ending inventory was P360,000. If the net sales were P1,200,000, how much is the gross profit? 260,000 1,200,000 190,000 1,010,000