Michael Bolton Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual item basis. Ite Qu m Cost anti per Cost to Estimate d selling No. ty unit Repla price Cost of completion and disposal Nor mal profit ce 1320 1,50 $3.97 $ 3.72 $5.58 $ 0.43 $ 1.55 133: 1,201 $3.35 $ 2.85 $ 4.34 $ 0.62 $ 0.62 142 1,10 $5.58 $ 4.59 $6.20 $ 0.50 $ 1.24 143 1,30 $4.46 $ 3.84 $ 3.97 $ 0.31 $ 1.12 1510 1,00 $2.79 $2.48 $ 4.03 $ 0.99 $ 0.74 1522 800 $ 3.72 $ 3.35 $ 4.71 $ 0.50 $ 0.62 157 3,301 $2.23 $ 1.98 $ 3.10 $ 0.93 $ 0.62 162 1,301 $5.83 $ 6.45 $ 7.44 $ 0.62 $ 1.24 Required: From the information above, determine the amount of Bolton Company inventory.

Michael Bolton Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual item basis. Ite Qu m Cost anti per Cost to Estimate d selling No. ty unit Repla price Cost of completion and disposal Nor mal profit ce 1320 1,50 $3.97 $ 3.72 $5.58 $ 0.43 $ 1.55 133: 1,201 $3.35 $ 2.85 $ 4.34 $ 0.62 $ 0.62 142 1,10 $5.58 $ 4.59 $6.20 $ 0.50 $ 1.24 143 1,30 $4.46 $ 3.84 $ 3.97 $ 0.31 $ 1.12 1510 1,00 $2.79 $2.48 $ 4.03 $ 0.99 $ 0.74 1522 800 $ 3.72 $ 3.35 $ 4.71 $ 0.50 $ 0.62 157 3,301 $2.23 $ 1.98 $ 3.10 $ 0.93 $ 0.62 162 1,301 $5.83 $ 6.45 $ 7.44 $ 0.62 $ 1.24 Required: From the information above, determine the amount of Bolton Company inventory.

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 5E: Inventory Write-Down The following information is taken from Aden Companys records: Required: 1....

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Retail Inventory Method The following information relates to the retail inventory method used by Jeffress Company: Required: 1. Compute the ending inventory by the retail inventory method using the following cost flow' assumptions (round the cost-to-retail ratio to 3 decimal places): a. FIFO b. average cost c. LIFO d. lower of cost or market (based on average cost) 2. Next Level What assumptions are necessary for the retail inventory method to produce accurate estimates of ending inventory?
Inventory Write-Down Stiles Corporation uses the FIFO cost flow assumption and is in the process of applying the LCNRV rule for each of two products in its ending inventory. A profit margin of 30% on the selling price is considered normal for each product. Specific data for each product are as follows: Inventory Write-Down Use the information in E8-1. Assume that Stiles uses the LIFO cost flow assumption and is applying the LCM rule. Required: 1. What is the correct inventory value for each product? 2. Next Level With regard to requirement 1, what effect does the imposition of the constraints on market value have on the inventory valuations?
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 Blacks ending inventory.
Inventory Valuation Specific identification method Weighted average cost method FIFO method LIFO method LIFO liquidation LIFO conformity rule LIFO reserve Replacement cost Inventory profit Lower-of-cost-or-market (LCM) rule Inventory turnover ratio Number of days sales in inventory Moving average (Appendix) The name given to an average cost method when a weighted average cost assumption is used with a perpetual inventory system. An inventory costing method that assigns the same unit cost to all units available for sale during the period. A conservative inventory valuation approach that is an attempt to anticipate declines in the value of inventory before its actual sale. An inventory costing method that assigns the most recent costs to ending inventory. The current cost of a unit of inventory. An inventory costing method that assigns the most recent costs to cost of goods sold. A measure of how long it takes to sell inventory. The IRS requirement that when LIFO is used on a tax return, it must also be used in reporting income to stockholders. An inventory costing method that relies on matching unit costs with the actual units sold. The portion of the gross profit that results from holding inventory during a period of rising prices. The result of selling more units than are purchased during the period, which can have negative tax consequences if a company is using LIFO. The excess of the value of a companys inventory stated at FIFO over the value stated at LIFO. A measure of the number of times inventory is sold during the period.
Novak Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual item basis. Cost Item Qua No. Cost to Per ntity Replace Estimated Selling Price Cost Completion and Disposal Normal Profit Unit 1320 1,600 $ 3.42 $ 3.21 $ 4.82 $ 0.37 $ 1.34 1333 1,300 2.89 2.46 3.75 0.54 0.54 1426 1,200 4.82 3.96 5.35 0.43 1.07 1437 1,400 3.85 3.32 3.42 0.27 0.96 1510 1,100 3.85 3.32 3.42 0.27 0.96 1522 3,400 1.93 1.71 2.68 0.80 0.54 1573 3,400 1.93 1.71 2.68 0.80 0.54 1626 1,400 5.03 5.56 6.42 0.54 1.07 From the information above, determine the amount of Novak Company inventory
Company inventory?
Sheffield Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Item No. Quantity Cost per Unit Cost to Replace Estimated Selling Price Cost of Completion and Disposal Normal Profit 1320 1,300 $3.74 $3.51 $5.27 $0.41 $1.46 1333 1,000 3.16 2.69 4.10 0.59 0.59 1426 900 5.27 4.33 5.85 0.47 1.17 1437 1,100 4.21 3.63 3.74 0.29 1.05 1510 800 2.63 2.34 3.80 0.94 0.70 1522 600 3.51 3.16 4.45 0.47 0.59 1573 3,100 2.11 1.87 2.93 0.88 0.59 1626 1,100 5.50 6.08 7.02 0.59 1.17 From the information above, determine the amount of Sheffield Company inventory. The amount of Sheffield Company’s inventory
Marin Company follows the practice of pricing its inventory at the lower- of-cost-or-market, on an individual-item basis. Cost Cost to Ite Estimated Cost of Norm Qua m per Replac Selling Completion al ntity No. Unit e Price and Dsposal Profit 1320 1,400 $ 3.81 $ 3.57 $ 5.36 $0.42 $1.49 1333 1,100 3.21 2.74 4.17 0.60 0.60 1426 1,000 5.36 4.40 5.95 0.48 1.19 1437 1,200 4.28 3.69 3.81 0.30 1.07 1510 900 2.68 2.38 3.87 0.95 0.71 1522 700 3.57 3.21 4.52 0.48 0.60 1573 3,200 2.14 1.90 2.98 0.89 0.60 1626 1,200 5.59 6.19 7.14 0.60 1.19 From the information above, determine the amount of Marin Company Inventory. The amount of Marin Company inventory $
Crane Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Item No. Quantity Cost per Unit Cost to Replace Estimated Selling Price Cost of Completion and Disposal Normal Profit 1320 1,300 $3.23 $3.03 $4.55 $0.35 $1.26 1333 1,000 2.73 2.32 3.54 0.51 0.51 1426 900 4.55 3.74 5.05 0.40 1.01 1437 1,100 3.64 3.13 3.23 0.25 0.91 1510 800 2.27 2.02 3.28 0.81 0.61 1522 600 3.03 2.73 3.84 0.40 0.51 1573 3,100 1.82 1.62 2.53 0.76 0.51 1626 1,100 4.75 5.25 6.06 0.51 1.01 From the information above, determine the amount of Crane Company inventory.
Coronado Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Item No. Quantity Cost per Unit Cost to Replace Estimated Selling Price Cost of Completion and Disposal Normal Profit 1320 1,800 $3.58 $3.36 $5.04 $0.39 $1.40 1333 1,500 3.02 2.58 3.92 0.56 0.56 1426 1,400 5.04 4.14 5.60 0.45 1.12 1437 1,600 4.03 3.47 3.58 0.28 1.01 1510 1,300 2.52 2.24 3.64 0.90 0.67 1522 1,100 3.36 3.02 4.26 0.45 0.56 1573 3,600 2.02 1.79 2.80 0.84 0.56 1626 1,600 5.26 5.82 6.72 0.56 1.12 From the information above, determine the amount of Coronado Company inventory. The amount of Coronado Company’s inventory $enter the dollar amount of Coronado Company's inventory
Bramble Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Item No. Quantity Cost per Unit Cost to Replace Estimated Selling Price Cost of Completion and Disposal Normal Profit 1320 1,900 $3.65 $3.42 $5.13 $0.40 $1.43 1333 1,600 3.08 2.62 3.99 0.57 0.57 1426 1,500 5.13 4.22 5.70 0.46 1.14 1437 1,700 4.10 3.53 3.65 0.29 1.03 1510 1,400 2.57 2.28 3.71 0.91 0.68 1522 1,200 3.42 3.08 4.33 0.46 0.57 1573 3,700 2.05 1.82 2.85 0.86 0.57 1626 1,700 5.36 5.93 6.84 0.57 1.14 From the information above, determine the amount of Bramble Company inventory.
Splish Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Item No. Quantity Cost per Unit Cost to Replace Estimated Selling Price Cost of Completion and Disposal Normal Profit 1320 1,600 $3.97 $3.72 $5.58 $0.43 $1.55 1333 1,300 3.35 2.85 4.34 0.62 0.62 1426 1,200 5.58 4.59 6.20 0.50 1.24 1437 1,400 4.46 3.84 3.97 0.31 1.12 1510 1,100 2.79 2.48 4.03 0.99 0.74 1522 900 3.72 3.35 4.71 0.50 0.62 1573 3,400 2.23 1.98 3.10 0.93 0.62 1626 1,400 5.83 6.45 7.44 0.62 1.24 From the information above, determine the amount of Splish Company inventory. The amount of Splish Company’s inventory