If the cost of an item of inventory is $45.00 and the current replacement cost is $60.00, what is the amount included in inventory according to the lower of cost or market? a. $105.00 b. $45.00 C. $15.00 d. $60.00

If the cost of an item of inventory is $45.00 and the current replacement cost is $60.00, what is the amount included in inventory according to the lower of cost or market? a. $105.00 b. $45.00 C. $15.00 d. $60.00

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Inventories

Section: Chapter Questions

Problem 7DQ: Using the following data, how should the inventory be valued under lower of cost or market? Original...

See similar textbooks

Related questions

Q: General Accounting: Zmeta Glass Studio uses batch costing: Raw materials: Base cost $150/batch, each…

A: Explanation of Batch Costing: Batch costing is a method of cost accounting used when products are…

Q: Question: The following information applies to Job 235 completed by Trisha Manufacturing Company…

A: Concept of Contract Price:The contract price represents the total amount agreed upon between the…

Q: None

A: The cost of common stock refers to the amount of return that investors anticipate in equal to the…

Q: An ARO is to be calcualted for the Leashold improvement made in 2024. The book life given is 10…

A: To calculate the Asset Retirement Obligation (ARO) and other required values based on the given…

Q: Answer?? Financial accounting

A: Step 1: Define MarginMargin and turnover are the two components used to calculate return on…

Q: Do fast this question answer financial accounting

A: The government's deficit will be the difference between its spending and its tax revenue. In this…

Q: What is the fair value of this share today on these financial accounting question?

A: Step 1:First calculate the next expected dividend (D1): Next expected dividend (D1) = D0 * (1+g)…

Q: I need this question general Accounting

A: Step 1: Define Inventoryinventory includes stocks of raw materials, finished goods, and…

Q: Need help with this general accounting question

A: Step 1: Define Ending InventoryThe total monetary value of products held by a company at the end of…

Q: Hello tutor please given answer general Accounting

A: Step 1: Define PensionPension is a scheme that sometimes is mandatory to offer by the employer to…

Q: Provide correct answer general Accounting

A: Step 1: Define Return on Equity RatioIn the context of accounting, the return on equity ratio is a…

Q: Financial accounting

A: Step 1: Define Internal Growth RateThe internal growth rate is the maximum growth that an…

Q: Please provide this question solution general accounting

A: 1. The note is worth $20,000 with 10% interest for 18 months.Interest = $20,000 × 10% × 1.5 =…

Q: Gross Profit would be____.

A: Step 1:First calculate the net sales revenue: Net sales revenue = Gross sales - Sales return and…

Q: General accounting

A: Step 1: Define DTAs and DTLsDeferred tax liabilities (DTLs) and deferred tax assets (DTAs) are tax…

Q: None

A: To determine the size of the capital structure at which the cost of debt changes, we use the target…

Q: I need this question answer general Accounting

A: Step 1: Identify the values for PBO (December 31) and plan assets (December 31).Step 2: Use the…

Q: If you give me wrong answer I will give you unhelpful rate on these general accounting question

A: Step 1: Define Net IncomeNet income is an accounting approach in which all the expenses and receipts…

Q: What was the net loss in dollars for this accounting question?

A: Step 1: Define Net LossA net loss arises when the costs of a business exceed the revenues being…

Q: None

A: The question requires the determination of the return on equity. One method being used is the Dupon…

Q: How many units were started and completed with respect to direct materials during the month?

A: Explanation of Beginning Work-in-Process:The Beginning Work-in-Process (WIP) refers to the partially…

Q: Need help with this question solution general accounting

A: Step 1:The dividend paid can be calculated by rearranging this formula of payout ratio and by…

Q: How does business model evolution affect accounting adaption?

A: As businesses evolve, their operations, revenue streams, and cost structures may change, which often…

Q: Hi expert provide correct answer general accounting

A: Step 1: Define Fixed CostsThe total fixed costs remain constant irrespective of the changes in the…

Q: Valley Creek Store's daily register records an opening float of $300. During the day, the store made…

A: Explanation of Opening Float: Opening float refers to the initial amount of cash placed in a…

Q: Provide correct option general accounting

A: Step 1: Define Cost of Goods ManufacturedWhen you add up all the manufacturing cost for a period and…

Q: What purpose does documentary reliability analysis serve in digital accounting? (a) Assesses…

A: Explanation of Documentary Reliability Analysis: Documentary reliability analysis is a systematic…

Q: Do fast answer of this accounting questions

A: Step 1: Definition of Accounting Equation and Equity ChangesThe accounting equation states that…

Q: Accounting Question

A: Step 1: Define Net Operating IncomeNet operating income is the income after paying for the operating…

Q: None

A: Step 1: Define Variance PercentageWe just need two values for calculating the variance percentage.…

Q: Please choose the accurate answer for this with explanation

A: Explanation of Redeemable Preferred Stock: Redeemable preferred stock is a specific type of…

Q: General Accounting question

A: As per Dividend Discount Model- Current Stock Price = (D0*(1+Growth Rate))/(Required Rate - Growth…

Q: Please provide correct answer general Accounting

A: Step 1: Define Variable CostingVariable costing is a method to determine the total variable expenses…

Q: The balance sheet for solving this question general Accounting

A: `Step 1: Define Working CapitalThe working capital identifies the company's ability to pay its…

Q: Hi expert please give me answer general accounting question

A: Step 1: Calculation of Capital GainCapital Gain = Final Price - Purchase PriceCapital Gain = $96 -…

Q: ???

A: Explanation of Purchase Price: Purchase price is the total amount of money one company pays to…

Q: Hello tutor please provide answer accounting questions

A: The compound annual growth rate commonly known as CAGR refers to the figure showing the average rate…

Q: Choose the right

A: Explanation of Satisfaction-Guaranteed Refund Policies: These are customer-friendly policies that…

Q: Don't use ai given answer accounting questions

A: Step 1: Definition of Cost of Goods Sold (COGS)The cost of goods sold (COGS) represents the cost of…

Q: if contingent consideration, acqusition related costs and contingent liabilities included in…

A: Goodwill is an intangible asset that is associated with the purchase of one company by another.…

Q: Question: The following information was taken from the accounting records of Reliable Tool…

A: Step 1:First calculate the total manufacturing cost: Total manufacturing cost = Direct material +…

Q: Don't use ai answer general accounting question

A: Step 1: Definition of Standard Cost and Budgeted CostStandard cost refers to the estimated cost per…

Q: Need help with this general accounting question

A: Step 1: Define Cash Disbursements for Materials PurchasesCash disbursements for materials purchases…

Q: Please give me answer general accounting question

A: Step 1: Calculate Degree of Operating Leverage (DOL)• Formula: DOL = Contribution Margin ÷ Net…

Q: Please solve this question general accounting

A: Step 1: Define Consolidated StatementsIn the consolidated statements, accounts recorded will include…

Q: General Accounting

A: The question would require us to compute for the dividend yield and the required return. First…

Q: What are its annual interest charges for this financial accounting question?

A: Step 1: Define Interest ChargeInterest charge refers to the cost of borrowing funds (like a loan)…

Q: General Accounting

A: Step 1: Define Cost-Volume-Profit (CVP) AnalysisThe CVP analysis is used to ascertain the profit…

Q: Provide correct option general accounting

A: Step 1: Define Variable and Absorption Costing MethodIn accounting, the variable and absorption…

Q: General Accounting

A: The question involves the cost of equity capital, and the proper method based on the given data is…

Question

General Accounting solve these one

If the cost of an item of inventory is $45.00 and the current
replacement cost is $60.00, what is the amount included in
inventory according to the lower of cost or market?
a. $105.00
b. $45.00
C. $15.00
d. $60.00

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for weighted average (AVG).
Use the weighted-average (AVG) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
Compare the calculations for gross margin for B76 Company, based on the results of the perpetual inventory calculations using FIFO, LIFO, and AVG.
Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for last-in, first-out (LIFO).
Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for first-in, first-out (FIFO).
Retail Inventory Method The following information relates to the retail inventory method used by Jeffress Company: Required: 1. Compute the ending inventory by the retail inventory method using the following cost flow' assumptions (round the cost-to-retail ratio to 3 decimal places): a. FIFO b. average cost c. LIFO d. lower of cost or market (based on average cost) 2. Next Level What assumptions are necessary for the retail inventory method to produce accurate estimates of ending inventory?
If the cost of an item of inventory is $52.00 and the current replacement cost is $70.00, what is the amount included in inventory according to the lower of cost or market? Select the correct answer. A. $18.00 B. $122.00 C. $52.00 D. $70.00
Need answer
I want to answer this question
I want the correct answer
Applying the lower of cost or market to each item of inventory, what should the total inventory value be for the following items? Item InventoryQuantity Cost perUnit Market Valueper Unit TotalCost TotalMarket A 300 $15.00 $14.50 $4,500 $4,350 B 200 14.00 15.00 2,800 3,000 C 100 17.00 17.50 1,700 1,750 a. $8,850 b. $9,100 c. $9,250 d. $9,000
If the cost of an item of inventory is $60 and the current replacement cost is $75, the amount included in inventory according to the lower of cost or market is a. $15 b. $60 c. $75 d. $135