Moberg Company sells three different categories of tools (small, medium, and large). The cost and market value of its inventory of tools are as follows. Cost Market Value Small $ 64,200 $ 72,700 Medium 2,60,400 Large 1,72,500 2,89,200 1,52,900 Determine the value of the company's inventory under the lower-of-cost or market value approach.

Moberg Company sells three different categories of tools (small, medium, and large). The cost and market value of its inventory of tools are as follows. Cost Market Value Small $ 64,200 $ 72,700 Medium 2,60,400 Large 1,72,500 2,89,200 1,52,900 Determine the value of the company's inventory under the lower-of-cost or market value approach.

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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Question - Company sells three different categories of tools (small, medium, and large). The cost and market value of its inventory of tools is as follows. Cost Market Value Small $ 63,200 $ 72,000 Medium 2,89,400 2,60,800 Large 1,52,100 1,72,800 Determine the value of the company's inventory under the lower-of- cost-or-market value approach.
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Ehlo Company is a multiproduct firm. Presented below is information concerning one of its products, the Hawkeye. Date Transaction Quantity Price/Cost 1/1 Beginning inventory 5,300 $25 2/4 Purchase 5,100 27 7,250 5,250 4,100 8,200 2/20 Sale 4/2 Purchase 7/17 Purchase 11/4 Sale 28 30 Compute cost of goods sold, assuming Ehlo uses: (a) Periodic system, FIFO cost flow (b) Perpetual system, FIFO cost flow (c) Periodic system, LIFO cost flow (d) Perpetual system, LIFO cost flow (e) Periodic system, weighted-average cost flow (f) Perpetual system, moving-average cost flow Cost of goods sold tA LA ta LA LA A
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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: Product A Product B Historical cost $80 $96 Replacement cost 71 98 Estimated cost of disposal 32 28 Estimated selling price 150 120 Required: What is the correct inventory value for each product? Product A $ per unit Product B $ per unit
Stiles Corporation uses the LIFO cost flow assumption and is in the process of applying the LCM 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: Product A Product B Historical cost $80 $96 Replacement cost 70 98 Estimated cost of disposal 32 30 Estimated selling price 150 120 Required: 1. What is the correct inventory value for each product? Product A $fill in the blank 1 per unit Product B $fill in the blank 2 per unit 2. Next Level With regard to requirement 1, what effect does the imposition of the constraints on market value have on the inventory valuations? For Product A, For Product B,
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.
Ray Corporation 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 #2 $ 18 Product #1 Historical cost $10 Replacement cost 11 14 Estimated cost to dispose Estimated selling price 20 33 In pricing its ending inventory using the lower-of-cost-or-market, what unit values, rounded to the nearest dollar, should Oslo use for products #1 and #2, respectively? Example of Answer: 4000 (No comma, space, decimal point, or $ sign) Product 1 = Product 2 =
Marr Corporation 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 Product 2 Historical cost Replacement cost Estimated cost to complete/dispose Estimated selling price $40 45 10 80 $70 54 26 130 In pricing its ending inventory using the lower-of-cost-or-market, what unit values should Marr use for products #1 and #2, respectively? a. $40.00 and $60.00 b. $46.00 and $65.00 c. $40.00 and $65.00 d. $45.00 and $54.00
Nico Corp, has compiled the following information related to its three products. Costs of disposal are estimated to be 10% of selling price, and gross profit is estimated to be 20% of the selling price. Determine the value on inventory applying the lower-of-cost-or-market rule to each individual inventory item. Round each amount to the nearest dollar. Estimated selling price Original cost (LIFO) Replacement cost Inventory at the lower-of- cost-or-market #1 $600 500 400 $ #2 $400 250 350 $ #3 $500 450 475 $
A manufacturer has the following per-unit costs and values for its sole product: Cost $10.00 5.50 Current replacement cost Net realizable value 6.00 Net realizable value less normal profit 5.20 margin Under the first-in first-out (FIFO) cost method, what is the per-unit carrying value of inventory in the manufacturer's statement of financial position? O 55.20 $5.50 $6.00 $10.00
Ehlo Company is a multiproduct firm. Presented below is information concerning one of its products, the Hawkeye. Date Transaction Quantity Price/Cost 1/1 Beginning inventory 1,000 $12 2/4 Purchase 2,000 18 2/20 Sale 2,500 30 4/2 Purchase 3,000 23 11/4 Sale 2,200 33 Instructions Compute cost of goods sold, assuming Ehlo uses: a. Periodic system, FIFO cost flow. b. Perpetual system, FIFO cost flow. c. Periodic system, LIFO cost flow. d. Perpetual system, LIFO cost flow. e. Periodic system, weighted-average cost flow. f. Perpetual system, moving-average cost flow.