Jason Corporation accounts for its inventory using LIFO and applies the LCM rule. The company has com following information regarding the cost, replacement cost, net realizable value (NRV), and NRV less a normal profit margin for its three categories of inventory items: Inventory Item Cost Replacement Cost NRV NRV less Normal Profit Margin Guitars $11.200 $11,000 $11.150 $11,100 Banjos 12,000 12,200 12,050 11,900 Mandolins 11.500 11,400 11.600 11,450 If Jason applies LCM to the total inventory, what is the inventory valuation at year-end 20X1 after applying the LCM rule and making the adjusting entry? O $34,750 O $34,550 O $34,800 $34,600

Jason Corporation accounts for its inventory using LIFO and applies the LCM rule. The company has com following information regarding the cost, replacement cost, net realizable value (NRV), and NRV less a normal profit margin for its three categories of inventory items: Inventory Item Cost Replacement Cost NRV NRV less Normal Profit Margin Guitars $11.200 $11,000 $11.150 $11,100 Banjos 12,000 12,200 12,050 11,900 Mandolins 11.500 11,400 11.600 11,450 If Jason applies LCM to the total inventory, what is the inventory valuation at year-end 20X1 after applying the LCM rule and making the adjusting entry? O $34,750 O $34,550 O $34,800 $34,600

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 2RE: Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net...

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