Palmer Electronics applied FIFO to its inventory and provided the following data for its year-end inventory: • . Tablets 120 units at a cost per unit of $95 Smartwatches - 150 units at a cost per unit of $68 Headphones - 180 units at a cost per unit of $72 The net realizable values at year-end were: • Tablets: $98 . Smartwatches: $60 . Headphones: $65 Determine the amount of ending inventory using the lower-of- cost or market (LCM) rule.
Palmer Electronics applied FIFO to its inventory and provided the following data for its year-end inventory: • . Tablets 120 units at a cost per unit of $95 Smartwatches - 150 units at a cost per unit of $68 Headphones - 180 units at a cost per unit of $72 The net realizable values at year-end were: • Tablets: $98 . Smartwatches: $60 . Headphones: $65 Determine the amount of ending inventory using the lower-of- cost or market (LCM) rule.
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 67P
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Question
Please explain the solution to this general accounting problem with accurate principles.
Transcribed Image Text:Palmer Electronics applied FIFO to its inventory and provided the
following data for its year-end inventory:
•
.
Tablets 120 units at a cost per unit of $95
Smartwatches - 150 units at a cost per unit of $68
Headphones - 180 units at a cost per unit of $72
The net realizable values at year-end were:
•
Tablets: $98
.
Smartwatches: $60
.
Headphones: $65
Determine the amount of ending inventory using the lower-of-
cost or market (LCM) rule.
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