Ruan Shipping Co. follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. From the information included below, determine (a) the amount of the write-off required Ruan to record inventory at the lower-of-cost-or-market and (b) the final value of Ruan's inventory. Item Qua Cost Cost to Est. Cost to Normal 1320 1,200 $ 3.20 $ 3.00 $ 4.50 $ 0.35 $ 1.25 1333 900 $ 2.70 $ 2.30 $ 3.40 $0.50 $0.50 1426 800 $ 4.50 $ 3.70 $5.00 $ 0.40 $ 1.00 1427 1,000 $ 3.60 $ 3.10 $ 3.20 $ 0.45 $ 0.90 1510 700 $2.25 $ 2.00 $3.25 $ 0.80 $ 0.60 1522 500 $ 3.00 $ 2.70 $ 3.90 $ 0.40 $0.50 1573 3,000 $ 1.80 $ 1.60 $ 2.50 $ 0.75 $0.50 1626 1,000 $ 4.70 $5.20 $ 6.00 $ 0.50 $ 1.00
Ruan Shipping Co. follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. From the information included below, determine (a) the amount of the write-off required Ruan to record inventory at the lower-of-cost-or-market and (b) the final value of Ruan's inventory. Item Qua Cost Cost to Est. Cost to Normal 1320 1,200 $ 3.20 $ 3.00 $ 4.50 $ 0.35 $ 1.25 1333 900 $ 2.70 $ 2.30 $ 3.40 $0.50 $0.50 1426 800 $ 4.50 $ 3.70 $5.00 $ 0.40 $ 1.00 1427 1,000 $ 3.60 $ 3.10 $ 3.20 $ 0.45 $ 0.90 1510 700 $2.25 $ 2.00 $3.25 $ 0.80 $ 0.60 1522 500 $ 3.00 $ 2.70 $ 3.90 $ 0.40 $0.50 1573 3,000 $ 1.80 $ 1.60 $ 2.50 $ 0.75 $0.50 1626 1,000 $ 4.70 $5.20 $ 6.00 $ 0.50 $ 1.00
Chapter10: Inventory
Section: Chapter Questions
Problem 9PB: Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for B76 Company,...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,