Moss Company has determined its December 31,2019 inventory on a FIFO basis to be P4,000,000. Information pertaining to that inventory follows: Estimated selling price Estimated cost of disposal Normal profit margin Current replacement cost 4,080,000 200,000 600,00 3,600,000 Most records losses that result from applying the lower of cost or market rule. At December 31, 2019, what should be the net carrying value of Moss' inventory?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Moss Company has determined its December 31,2019 inventory on a FIFO basis to be P4,000,000.
Information pertaining to that inventory follows:
Estimated selling price
Estimated cost of disposal
Normal profit margin
Current replacement cost
Most records losses that result from applying the lower of cost or market rule. At December 31,
2019, what should be the net carrying value of Moss' inventory?
4,080,000
200,000
600,000
3,600,000
Transcribed Image Text:Moss Company has determined its December 31,2019 inventory on a FIFO basis to be P4,000,000. Information pertaining to that inventory follows: Estimated selling price Estimated cost of disposal Normal profit margin Current replacement cost Most records losses that result from applying the lower of cost or market rule. At December 31, 2019, what should be the net carrying value of Moss' inventory? 4,080,000 200,000 600,000 3,600,000
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