Presented below is information related to Coronado Inc's inventory, assuming Coronado uses lower-of-LIFO cost-or-ma Historical cost Selling price Cost to distribute Current replacement cost Normal profit margin (per unit) Ceiling Floor $ Skis $235.60 $ 262.88 23.56 251.72 39.68 Boots $131.44 179.80 9.92 130.20 35.96 Determine the following: (a) The two limits to market value (i.e., the ceiling and the floor) that should be used in the lower-of-cost-or-market compe skis. (Round answers to 2 decimal places, e.g. 52.75.) Parkas $65.72 91.45 3.10 63.24 26.35 (b) The cost amount that should be used in the lower-of-cost-or-market comparison of boots. (Round answer to 2 decimal p
Presented below is information related to Coronado Inc's inventory, assuming Coronado uses lower-of-LIFO cost-or-ma Historical cost Selling price Cost to distribute Current replacement cost Normal profit margin (per unit) Ceiling Floor $ Skis $235.60 $ 262.88 23.56 251.72 39.68 Boots $131.44 179.80 9.92 130.20 35.96 Determine the following: (a) The two limits to market value (i.e., the ceiling and the floor) that should be used in the lower-of-cost-or-market compe skis. (Round answers to 2 decimal places, e.g. 52.75.) Parkas $65.72 91.45 3.10 63.24 26.35 (b) The cost amount that should be used in the lower-of-cost-or-market comparison of boots. (Round answer to 2 decimal p
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Presented below is information related to Coronado Inc's inventory, assuming Coronado uses lower-of-LIFO cost-or-market.
Historical cost
Selling price
Cost to distribute
Current replacement cost
Normal profit margin
Ceiling
(per unit)
Floor
$
$
Skis
$235.60
$
262.88
23.56
Determine the following:
(a) The two limits to market value (i.e., the ceiling and the floor) that should be used in the lower-of-cost-or-market computation for
skis. (Round answers to 2 decimal places, e.g. 52.75.)
251.72
39.68
Boots Parkas
$131.44
$65.72
179.80
91.45
9.92
3.10
130.20
63.24
26.35
35.96
(b) The cost amount that should be used in the lower-of-cost-or-market comparison of boots. (Round answer to 2 decimal places, e.g.
52.75.)
(c) The market amount that should be used to value parkas on the basis of the lower-of-cost-or-market. (Round answer to 2 decimal
places, e.g. 52.75.)
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