Presented below is information related to Swifty Inc.'s inventory, assuming Swifty uses lower-of-LIFO cost-or-market. (Per unit) Skis Boots Parkas Historical cost $285.00 $ 159.00 $ 79.50 Selling price $318.00 $217.50 $ 110.63 Cost to distribute $ 28.50 $ 12.00 $ 3.75 Current replacement cost $304.50 $157.50 $ 76.50 Normal profit margin $ 48.00 $ 43.50 $ 31.88 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. Celling Limit $ Floor Limit $ b. The cost amount that should be used in the lower-of-cost-or-market comparison of boots. The cost amount $ c. The market amount that should be used to value parkas on the basis of the lower-of-cost-or-market. The market amount $

Presented below is information related to Swifty Inc.'s inventory, assuming Swifty uses lower-of-LIFO cost-or-market. (Per unit) Skis Boots Parkas Historical cost $285.00 $ 159.00 $ 79.50 Selling price $318.00 $217.50 $ 110.63 Cost to distribute $ 28.50 $ 12.00 $ 3.75 Current replacement cost $304.50 $157.50 $ 76.50 Normal profit margin $ 48.00 $ 43.50 $ 31.88 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. Celling Limit $ Floor Limit $ b. The cost amount that should be used in the lower-of-cost-or-market comparison of boots. The cost amount $ c. The market amount that should be used to value parkas on the basis of the lower-of-cost-or-market. The market amount $

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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Kulsrud Company would like to estimate the current inventory level. Using the gross profit method and the following information, estimate the current inventory level for Kulsrud Company. Goods available for sale 100,000 Net sales 150,000 Normal gross profit as a percent of sales 40%
Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for last-in, first-out (LIFO).
Presented below is information related to Rembrandt Inc.’s inventory, assuming Rembrandt uses lower-of-LIFO cost-or-market. 000000(per unit)000000 0 Skis0 0Boots0 Parkas Historical cost $190.00 $106.00 $53.00 Selling price 212.00 145.00 73.75 Cost to distribute 19.00 8.00 2.50 Current replacement cost 203.00 105.00 51.00 Normal profit margin 32.00 29.00 21.25 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, (b) the cost amount that should be used in the lower-of-cost-or-market comparison of boots, and (c) the market amount that should be used to value parkas on the basis of the lower-of-cost-or-market.
Presented below is information related to Sheffield Inc's inventory, assuming Sheffield uses lower-of-LIFO cost-or-market. Historical cost Selling price Cost to distribute Current replacement cost Normal profit margin (per unit) Floor $ Skis $254.60 $ $ 284.08 25.46 272.02 42.88 Boots $142.04 194.30 10.72 140.70 Parkas $71.02 98.83 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.) Ceiling $ 3.35 68.34 38.86 28.48 (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.)
Calculate the Lower-of-Cost-or-Market using the table below for Samson Goods, Inc. springs inventory. (1) Complete the table. Part # Cost Replacement Cost Net Realizable Value Normal Profit NRV less Normal Profit LCM SP17G $181,000 $ 152,000 $151,000 $15,000 SP23X 254,000 249,800 262,500 25,800 SP78A 205,400 214,000 206,000 10,200 Total (2) Prepare the journal entry to record the Allowance to Reduce Inventory to Market using the "Loss Method". $ $ (Record the adjustment to inventory due to decline in value)
Smmons. Inc. uses the lower-of-cont-ormarket method to value s inventory that is accounted for using the FIFO method. Data regarding an tam in its inventory ls as follows Cost $26 Replacement cost 20 Selling price 30 Cost of completion and disposal 2 Normal profit margin 7. What is the lower-of-cost-or-mariket for this item?
Presented below is information related to Waterway Inc's inventory, assuming Waterway uses lower-of-LIFO cost-or-market. (per unit) Skis Boots Parkas Historical cost $262.20 $146.28 $73.14 Selling price 292.56 200.10 101.78 Cost to distribute 26.22 11.04 3.45 Current replacement cost 280.14 144.90 70.38 Normal profit margin 44.16 40.02 29.33 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.) Ceiling $ Floor $
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Presented below is information related to Nash Inc.’s inventory, assuming Nash uses lower-of-LIFO cost-or-market. (c) The amount that should be used to value parkas on the basis of the lower-of-cost-or-market. (Round answers to 2 decimal places, e.g. 52.75.) (per unit) Skis Boots Parkas Historical cost $197.60 $110.24 $55.12 Selling price 220.48 150.80 76.70 Cost to distribute 19.76 8.32 2.60 Current replacement cost 211.12 109.20 53.04 Normal profit margin 33.28 30.16 22.10
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On the basis of the data shown below: Item InventoryQuantity Cost perUnit Market Value per Unit(Net Realizable Value) Raven 10 1,200 $115 $112 Dove 23 6,500 17 22 Determine the value of the inventory at the lower of cost or market. (Note: Apply lower of cost or market to each inventory item, as shown in Exhibit 9.)Exhibit 9
The following information is taken from Aden Company's records: Product Group Units Cost/Unit Market/Unit A 1 600 $ 1.00 $ 0.80 B 1 250 1.50 1.55 C 2 150 5.00 5.25 D 2 100 6.50 6.40 E 3 80 25.00 24.60 What is the correct inventory value if the company applies the lower of cost or market to the inventory as a whole? When required, round your answers to the nearest cent. Total inventory value $