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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.)
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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