Information pertaining to the inventory of Palette Company follows.LIFO Selling ReplacementCost PriceCostCategory: SupremeItem A$5,600 $6,400$4,800Item B7,200 7,2007,680Item C17,600 17,60016,800Category: ClassicItem X28,800 28,80030,400Item Y35,200 42,40041,600Item Z56,000 48,00052,800The company has a normal profit margin of 20% of selling price and has no additional costs tocomplete or sell the items.What is the lower-of-cost-or-market value of the company's inventory applying the rule to (a) eachindividual item and (b) to each inventory category?Select one:a. Inventory item: $147,200; Inventory Category: $147,200b. Inventory item: $150,400; Inventory Category: $150,400c. Inventory item: $143,520; Inventory Category: $150,400d. Inventory item: $141,120; Inventory Category: $147,520

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Chamiching makes hacksaw blades. Inventory values are determined using the first in, first out (FIFO) method. Production and sales data for the first three years appear below. Hacksaw blades Sold Produced Yr 1 18,000 22,000 Yr 2 25,000 23,000 Yr 3 37,000 35,000 Sales price Full cost Yr 1 $10.00 $6.00 Yr 2 $11.00 $6.60 Yr 3 $12.00 $7.60 In the first year, variable costs accounted for half of the full costs. Total fixed production costs increased each subsequent year by 20%, as a result of step-fixed costs and a general inflationary price increase. For Chamiching, which of the following is true? Variable costing income (VCI) exceeds full costing income (FCI) every year VCI exceeds FCI in Yrs 1 and 2 only VCI exceeds FCI in Yrs 2 and 3 only VCI never exceeds FCI
Do not use dollar signs in your answers. It your answer is a negative number, put a minus sign in front. What is the balance in ending inventory using a LIFO cost flow when you sell 2,300 units for $18 per unit? Date Source 1/1/2011 Beginning Inventory 2/1/2011 Purchase 3/1/2011 Purchase Total Goods Available for Sale 33,400 Units Purchased 950 800 1,500 3,250 Cost Per Unit $14 $10 $12 Total Cost $ 13,300 $ 8,000 $ 18,000 $39,300
The following is a December 31, 2021, post-closing trial balance for Almway Corporation. Account Title Debits Credits Cash $ 45,000 Investment in equity securities 110,000 Accounts receivable 60,000 Inventory 200,000 Prepaid insurance (for the next 9 months) 9,000 Land 90,000 Buildings 420,000 Accumulated depreciation—buildings $ 100,000 Equipment 110,000 Accumulated depreciation—equipment 60,000 Patent (net) 10,000 Accounts payable 75,000 Notes payable 130,000 Interest payable 20,000 Bonds Payable 240,000 Common stock 300,000 Retained earnings 129,000 Totals $ 1,054,000 $ 1,054,000 Additional information: The investment in equity securities account includes an investment in common stock of another corporation of $30,000 which management intends to hold for at least…
Given the information available in the table below, what is the Wholesaler's Selling Price to the Retailer? SELLING MARGIN CHANNEL MEMBER COST PRICE % Supplier/Manufacturer $179.52 $224.40 20% not Wholesaler ??? 15% available not Retailer $300.00 12% available Consumer $300.00 O $256.00 O $224.40 O $240.00 $264.00
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Ames Trading Company has the following products in its ending inventory Cost per Unit Product Mountain bikes. Skateboards Gliders Inventory Items Quantity 12 22 12 Mountain bikes Skateboards Gliders $ 580 330 960 Compute lower of cost or market for inventory applied separately to each product. Units Market per Unit $ 510 370 910 Per Unit Cost Market Cost Total Market LCM applied to each product
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Cherokee Incorporated is a merchandiser that provided the following information Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases Required: . Prepare a traditional income statement. 2. Prepare a contribution format income statement. Amount 12,000 $ 17 $ 1 $ 3 $ 19,000 $ 15,000 $ 11,000 $ 24,000 $ 86,000 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a traditional income statement. Cherokee, Incorporated Traditional Income Statement Selling and administrative expenses: 0
Question - Company sells three different categories of tools (small, medium, and large). The cost and market value of its inventory of tools is as follows. Cost Market Value Small $ 63,200 $ 72,000 Medium 2,89,400 2,60,800 Large 1,52,100 1,72,800 Determine the value of the company's inventory under the lower-of- cost-or-market value approach.

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