Pat and Company's ending inventory (at cost) was $87,500. The company would have had to pay $100,000 to replace the ending inventory. Before consideration of the lower-of-cost-or-market rule, the company's cost of goods sold was $60,000. What is the correct application of the LCM rule?(general account)

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.

Bhushan Company has been using LIFO for inventory purposes because it would prefer to keep gross profits low for tax purposes. In its second year of operation (20-2), the controller pointed out that this strategy did not appear to work and suggested that FIFO cost of goods sold would have been higher than LIFO cost of goods sold for 20-2. Is this possible? REQUIRED Using the information provided, compute the cost of goods sold for 20-1 and 20-2 comparing the LIFO and FIFO methods.

Can you solve these general accounting question ?

Ivanhoe Inc. has the following information related to an item in its ending inventory. Packit (Product # 874) has a cost of $93, a replacement cost of $81, a net realizable value of $87, and a normal profit margin of $5. What is the final lower-of-cost-or-market inventory value for Packit? $82. $87. $93. $81.

Ross Electronics has one product in its ending inventory. Per unit data consist of the following: cost, $33; replacement cost, $31; selling price, $43; selling costs, $7. The normal profit is 20% of selling price.What unit value should Ross use when applying the lower of cost or market (LCM) rule to ending inventory?

Ross Electronics has one product in its ending inventory. Per unit data consist of the following: cost, $20; selling price, $30; selling costs, $4. What unit value should Ross use when applying the lower of cost or net realizable value rule to ending inventory?

The Company uses lower-of-cost-or-market approach. The replacement cost of an inventory item is $75. Net realizable value is $82.50. Net realizable value less a normal profit margin is $69. The cost of the item is $76.50. The inventory item would be valued at:

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At the end of the Year 2 accounting period, DeYoung Company determined that the market value of its inventory was $79,800. The historical cost of this inventory was $81,400. DeFazio uses the perpetual inventory method. Assuming the amount is immaterial, how will the necessary write-down to reduce the inventory to the lower-of-cost-or-market affect the company's financial statements? Multiple Choice O O Decrease total assets, gross margin, and net income Increase total assets and net income Decrease total assets and gross margin Decrease total assets and net income