Maynor Inc has two products in its ending inventory, each accounted for at the lower of cost or market. A profit margin of 30% on selling price is considered normal for each product. Specific data with respect to each product follows: Product A Product B Product C Product D Historical Cost Replacement Cost $ 22.50 S $ $ 20.00 $ 35.00 $ 40.00 $ 70.00 27.00 $ 25.00 $ 54.00 Estimated Cost To Dispose 5.00 $ 13.00 $ 10.00 $ 26.00 Estimated Selling Price $ 40.00 $ 65.00 $ 80.00 $ 130.00 In pricing its ending inventory using the lower-of-cost-or-market, what unit values should Maynor use for products A, B, C, &D respectively?
Maynor Inc has two products in its ending inventory, each accounted for at the lower of cost or market. A profit margin of 30% on selling price is considered normal for each product. Specific data with respect to each product follows: Product A Product B Product C Product D Historical Cost Replacement Cost $ 22.50 S $ $ 20.00 $ 35.00 $ 40.00 $ 70.00 27.00 $ 25.00 $ 54.00 Estimated Cost To Dispose 5.00 $ 13.00 $ 10.00 $ 26.00 Estimated Selling Price $ 40.00 $ 65.00 $ 80.00 $ 130.00 In pricing its ending inventory using the lower-of-cost-or-market, what unit values should Maynor use for products A, B, C, &D respectively?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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sharad
Transcribed Image Text:Maynor Inc has two products in its ending inventory, each accounted for at the lower of cost or
market. A profit margin of 30% on selling price is considered normal for each product. Specific
data with respect to each product follows:
Product
A
Product
B
Product
с
Product
D
Historical Cost
Replacement Cost
$
$ 20.00
22.50 $ 27.00 $
$ 35.00 $ 40.00 $ 70.00
25.00 $ 54.00
Estimated Cost To Dispose
Estimated Selling Price
S
5.00 $ 13.00 $ 10.00 $ 26.00
$ 40.00 $ 65.00 $ 80.00 $ 130.00
In pricing its ending inventory using the lower-of-cost-or-market, what unit values should
Maynor use for products A, B, C, &D respectively?
Designated Final
Historical Replacement
Product
Ceiling Floor
Cost
Cost
Market Inventory
Value
Value
Product A
20
22.5
Product B
35
27
Product C
40
25
Product D
70
54
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