Ivanhoe Inc. has the following information related to an item in its ending inventory. Packit (Product # 874) has a cost of $93, a replacement cost of $81, a net realizable value of $87, and a normal profit margin of $5. What is the final lower-of-cost-or-market inventory value for Packit? $82. $87. $93. $81.

Ivanhoe Inc. has the following information related to an item in its ending inventory. Packit (Product # 874) has a cost of $93, a replacement cost of $81, a net realizable value of $87, and a normal profit margin of $5. What is the final lower-of-cost-or-market inventory value for Packit? $82. $87. $93. $81.

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

26. The following data refer to Issue Company’s ending inventory: Item code Quantity Unit Cost Unit Market Small 100 $56 $59 Medium 420 38 44 Large 600 44 42 Extra-Large 220 64 67 How much is the inventory if the lower of cost or market rule is applied to each item of inventory?
A3
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.
Please give answer
1.) ABC Inc. has the following information related to an item in its ending inventory. Predator Laptop has a cost of P502, a selling price of P568, a cost to complete of P53, and a cost to sell of P38. What is the lower-of-cost-or-net realizable inventory value for Predator Laptop? A. P477 B. P515 C. P502 D. P530 2.) If the month-end bank statement shows a balance of P360,000, outstanding checks are P120,000, a deposit of P40,000 was in transit at month end, and a check for P5,000 was erroneously charged by the bank against the account, the correct balance in the bank account at month end is A. P285,000 B. P275,000 C. P205,000 D. P435,000
A-2
Jenks Company developed the following information about its inventories in applying the lower-of-cost-or-net-realizabl e-value(LCNRV) basis in valuing inventories: Product Cost NRV A $114,000 $120,000 B 80,000 76,000 C 160,000 162,000 After Jenks applies the LCNRV rule, the value of the inventory reported on the balance sheet would be
What will be the correct answer for weight average cost method for ending inventory and cost of goods sold?
answer in text form please (without image)
Han Company has three products in its ending inventory. Specific per unit data at the end of the year for each of the products are as follows: Cost Replacement cost Selling price Selling costs Normal profit Product 1 2 3 $ Cost Required: What unit values should Han use for each of its products when applying the lower of cost or market (LCM) rule to ending inventory? Product 1 $28 26 48 5 13 28 $ 98 58 Q Search Replacement cost 26 93 48 Product 2 $98 93 128 or 30 38 NRV Product 3 $58 48 60 10 20 W ENG 4x D 4:45 PM 11/27/2023
The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Product A n C D Cost $70 110 70 70 30 Product Per Unit ABCDE Selling Price Costs to sell consist of a sales commission equal to 20% of selling price and shipping costs equal to 10% 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? $90 160 110 100 40 Cost NRV Per Unit Inventory Value
Smith Company's inventory cost is $100. The expected sales price is $110, estimated selling costs are $6. The normal gross profit ratio is 20% of selling price. The replacement cost of the inventory is $95. Smith Company uses the LIFO inventory method so must use the lower of cost or market approach and this inventory item should be valued at Correct answer came back as $95, Id love an explanation for this. Thank you!