TB MC Qu. 10-72 Konan, Inc. needs to determine...Konan, Inc. needs to determine its inventory value. The following information pertains to the individual products in ending inventory:Replacement Selling Cost ofCostPrice$50$3840602430ProductL-19M-23N-05Multiple ChoiceOAssuming Konan uses the FIFO method for costing its inventory, the writedown of inventory value for Product N-05 isоOO$6.$2$8.Cost$405220$0.Completion$2102NormalProfit$1186

Replacement cost = $24Ceiling for market = 30-2 = 28Floor value = 28-6 = 22

Answered: Konan, Inc. needs to determine its…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Blake Company purchased two identical inventory items. The item purchased first cost $27.00, and the item purchased second cost $28.00. Blake sold one of the items for $50.00. Which of the following statements is true? Multiple Choice O The dollar amount assigned to ending inventory will be the same matter which inventory cost flow method is used. Cost of goods sold will be higher if Blake uses the FIFO rather than the weighted-average inventory cost flow method. Ending inventory will be lower if Blake uses the weighted-average rather than the FIFO inventory cost flow method. Gross margin will be higher if Blake uses LIFO rather than the FIFO inventory cost flow method.
Valuing Inventory at Lower-of-Cost-or-Market Management of Tarry Company takes the position that under the lower-of-cost-or-market rule, the two items below are reported in ending inventory at $119,520 (total). Inventory cost is reported using LIFO. • Edgers: 2,160 in inventory; cost is $22 each; replacement cost is $16 each; estimated sale price is $30 each; estimated distribution cost is $3 each; and normal profit is 10% of sale price. • Hedge clippers: 1,440 in inventory; cost is $50 each; replacement cost is $36 each; estimated sale price is $90 each; estimated distribution cost is $28 each; and normal profit is 20% of sale price. a. Compute your inventory valuation by item and in total for the Tarry Company inventory reported above. Inventory valuation for edgers $ Inventory valuation for hedge clippers Total inventory valuation b. Prepare the entry, if any, to report inventory at the lower-of-cost-or-market. Assume that all adjustments directly impact cost of goods sold and…
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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
value on units in ending inventory: 20,000 per-unit product cost using absorption costing method: 130 units Dollar amount of the value of ending inventory using the absorption costing method: 2,600,000 per-unit product cost using variable costing method: 110 units dollar amount of the value of ending inventory using the variable costing method: 2,200,000 1. If you were advising the accounting department on whcih method to use, which would you recommend?
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