Presented below is information related to Vaughn Inc.'s inventory, assuming Vaughn uses lower-of-LIFO cost-or- market. (per unit) Historical cost Selling price Cost to distribute Cupeni eest Skis $247.00 275.60 24.70 262.00 Boots $137.80 188.50 10.40 10% 50 Parkas $68.90 95.88 3.25 16.00
Presented below is information related to Vaughn Inc.'s inventory, assuming Vaughn uses lower-of-LIFO cost-or- market. (per unit) Historical cost Selling price Cost to distribute Cupeni eest Skis $247.00 275.60 24.70 262.00 Boots $137.80 188.50 10.40 10% 50 Parkas $68.90 95.88 3.25 16.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please Provide Explanation And Don`t Give Image Format
![Presented below is information related to Vaughn Inc.'s inventory, assuming Vaughn uses lower-of-LIFO cost-or-
market.
Historical cost
Selling price
Cost to distribute
(per unit)
Current replacement cost
Normal profit margin
Determine the following:
Ceiling
Floor
$
$
Skis
$
$247.00
275.60
24.70
263.90
41.60
Boots
$137.80
188.50
10.40
136.50
37.70
Parkas
$68.90
(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.)
95.88
3.25
66.30
27.63
(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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fed4d9e12-99f1-466b-ba8a-e2fc2cdd22ec%2F10f220dc-5cbb-4eca-9e10-701419ed32a3%2F8i9f3s_processed.png&w=3840&q=75)
Transcribed Image Text:Presented below is information related to Vaughn Inc.'s inventory, assuming Vaughn uses lower-of-LIFO cost-or-
market.
Historical cost
Selling price
Cost to distribute
(per unit)
Current replacement cost
Normal profit margin
Determine the following:
Ceiling
Floor
$
$
Skis
$
$247.00
275.60
24.70
263.90
41.60
Boots
$137.80
188.50
10.40
136.50
37.70
Parkas
$68.90
(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.)
95.88
3.25
66.30
27.63
(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.)
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