Silver stream Electronics applied FIFO to its inventory and obtained the following results for its ending inventory: Units Cost Per Unit NRV Per Unit Item Tablets 120 $95 Smartwatches 180 $75 $85 $65 $55 Wireless Ear buds 150 $50 Determine the amount of ending inventory at the lower of cost or net realizable value (NRV).

Silver stream Electronics applied FIFO to its inventory and obtained the following results for its ending inventory: Units Cost Per Unit NRV Per Unit Item Tablets 120 $95 Smartwatches 180 $75 $85 $65 $55 Wireless Ear buds 150 $50 Determine the amount of ending inventory at the lower of cost or net realizable value (NRV).

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...

See similar textbooks

Similar questions

Ivanhoe Inc. has the following information related to an item in its ending inventory. Packit (Product # 874) has a cost of $93, a replacement cost of $81, a net realizable value of $87, and a normal profit margin of $5. What is the final lower-of-cost-or-market inventory value for Packit? $82. $87. $93. $81.
Jenks Company developed the following information about its inventories in applying the lower-of-cost-or-net-realizabl e-value(LCNRV) basis in valuing inventories: Product Cost NRV A $114,000 $120,000 B 80,000 76,000 C 160,000 162,000 After Jenks applies the LCNRV rule, the value of the inventory reported on the balance sheet would be
tell answer for both calculations. General account
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?
Suppose that Ivanhoe Depot developed the following information about its inventories in applying the lower-of-cost-or-net- realizable-value (LCNRV) basis in valuing inventories: Product A B C Cost $119000 83000 166000 NRV $125000 79000 168000 After Ivanhoe Depot applies the LCNRV rule, the value of the inventory reported on the balance sheet will be $368000. O $364000. O $372000. O $376000.
Ross Electronics has one product in its ending inventory. Per unit data consist of the following: cost, $20; selling price, $30; selling costs, $4. What unit value should Ross use when applying the lower of cost or net realizable value rule to ending inventory?
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.
Splish Brothers, Inc. values its inventory at the lower-of-LIFO-cost-or-market. The following information is available from the company’s inventory records as of December 31, 2020. Item Quantity UnitCost ReplacementCost/Unit Estimated SellingPrice/Unit Completion & DisposalCost/Unit Normal ProfitMargin/Unit X490 8,976 $11.00 $10.52 $12.32 $2.64 $2.99 X512 4,356 6.16 6.60 7.83 0.22 1.58 X682 15,840 16.72 16.37 27.76 2.86 7.92 Z195 11,000 12.54 12.32 17.42 1.23 5.06 Z846 7,568 10.56 11.22 12.28 1.85 0.97 (a) Correct answer icon Your answer is correct. Calculate the lower-of-cost-or-market using the individual-item approach. (Round answers to 2 decimal places, e.g. 52.75.) (b) Partially correct answer icon Your answer is partially correct. Show the journal entries Splish Brothers, Inc. will…
Maxwell Corporation has the following inventory information at the end of the year: Inventory Item A Item B Item C Quantity 20 50 40 Multiple Choice Using the lower of cost and net realizable value method, for what amount would Maxwell report ending inventory? $2,300. $2,050. O $2,550. Unit Cost $20 30 10 O $2,800. Unit NRV $35 25 15
Lily Company applied FIFO to its inventory and got the following results for its ending inventory. Cameras 135 units at a cost per unit of S65 Blu-ray players 170 units at a cost per unit of S70 iPods 125 units at a cost per unit of $85 The net realizable value at year-end was cameras S73, Blu-ray players $65, and iPods $77. Determine the amount of ending inventory at lower-of-cost-or-net realizable value. Ending inventory %24
Presented below is selected information related to Bonita Electronics' inventory. (per unit) HDTV-50" HDTV-42" TV Stand Historical cost $ 496 $ 354 $71 Selling price 636 388 93 Cost to sell 37 18 3 Cost to complete 61 28 8 Determine the following: (a) the net realizable value for each item, and (b) the carrying value of each item under LCNRV. (a) (b) NRV LCNRV HDTV-50" HDTV-42" TV Stand %24 %24
A company has the following per unit recorded cost and replacement cost relating to its inventory: Item 1 Item 2 5 units 7 units Cost $50 Cost $60 Item 3 9 units Cost $30 Market $45 Market $65 Market $25 Applying the lower of cost or market method, the reported value of this company's ending inventory if LCM is applied to individual items is $870 $905 $920 $940