SLR Corporation has 900 units of each of its two products in its year-end inventory. Per unit data for each of the products are asfollows:CostReplacement costSelling priceSelling costsNormal profitProduct 1 Product 2$52$68664488542472811Determine the carrying value of SLR's inventory assuming that the lower of cost or market (LCM) rule is applied to individual products.What is the before-tax income effect of the LCM adjustment?

INVENTORY VALUATIONInventory Valuation is a Method of Calculation of Value of Inventory at the End…

Answered: SLR Corporation has 900 units of each…

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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The management of Aspen company believes that under the lower of cost or market rule, the 2 items below are reported in ending inventory at $129,500. Inventory cost is reported using LIFO. Item A: 2,260 in inventory; cost is $23 each; replacement cost is $15 each; estimated sale price is $32 each; estimated distribution cost is $2 each: and normal profit is 10% of sale price. İtem B: 1,540 in inventory; cost is $52 each: replacement cost is $35 each; estimated sale price is $95 each: estimated distribution cost is $25 each: and normal profit is 20% of sale price. a. Compute your inventory valuation by item and in total for the Aspen Company inventory reported above. Inventory valuation for Item A Inventory valuation for Item B Total inventory valuation b. Prepare the entry, if any, to report inventory at the lower-of-cast-or-market. Assume that all adjustments directly impact cost of goods sold and inventory.
d t nces SLR Corporation has 500 units of each of its two products in its year-end inventory. Per unit data for each of the products are as follows: Cost Replacement cost Selling price Selling costs Normal profit Product 1 $ 53 51 73 Required 1 Determine the carrying value of SLR's inventory assuming that the lower of cost or market (LCM) rule is applied to individual products. What is the before-tax income effect of the LCM adjustment? Complete this question by entering your answers in the tabs below. Product Cost 9 13 Required 2 Product 2 $ 37 29 39 7 11 Determine the carrying value of SLR's inventory assuming that the lower of cost or market (LCM) rule is applied to individual products. Market Per Unit Inventory Value Unit Cost Lower of Cost or Market
Power Company's ending inventory is understated by P7,000. The effects of this error in the current year's cost of goods sold and net income, respectively are.
The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Product Cost $ 50 A B 90 C 50 D 50 E 10 Product A Per Unit Costs to sell consist of a sales commission equal to 20% of selling price and shipping costs equal to 10% of cost. BUDE Required: What unit value should Royal Decking use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule to units of ending inventory? C Selling Price $ 70 130 Cost 90 80 20 NRV Per Unit Inventory Value
SLR Corporation has 1,200 units of each of its two products in its year-end inventory. Per unit data for each of the products are as follows: Product 1 Product 2 Cost $ 54 $ 36 Selling price 80 38 Costs to sell 4 5 Determine the carrying value of SLR’s inventory assuming that the lower of cost or net realizable value (LCNRV) rule is applied to individual products. What is the before-tax income effect of the LCNRV adjustment? What is the before-tax income effect of the LCNRV adjustment?
Han Company has three products in its ending inventory. Specific per unit data at the end of the year for each of the products are as follows: Cost Replacement cost Selling price Selling costs Normal profit Product 1 2 3 $ Cost Required: What unit values should Han use for each of its products when applying the lower of cost or market (LCM) rule to ending inventory? Product 1 $28 26 48 5 13 28 $ 98 58 Q Search Replacement cost 26 93 48 Product 2 $98 93 128 or 30 38 NRV Product 3 $58 48 60 10 20 W ENG 4x D 4:45 PM 11/27/2023
The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Product A n C D Cost $70 110 70 70 30 Product Per Unit ABCDE Selling Price Costs to sell consist of a sales commission equal to 20% of selling price and shipping costs equal to 10% of cost. Required: What unit value should Royal Decking use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule to units of ending inventory? $90 160 110 100 40 Cost NRV Per Unit Inventory Value
The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Product A B C D E Product A Costs to sell consist of a sales commission equal to 10% of selling price and shipping costs equal to 5% of cost. Required: What unit value should Royal Decking use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule to units of ending inventory? BUDE Cost $ 180 220 160 140 90 C Per Unit Selling Price $ 200 240 220 240 125 Cost NRV Per Unit Inventory Value
Massi pharmacies, Inc. started operations on January 1 2X11. The company used the average cost method t=o value inventory. Effective January 1 2X15, Massi elected to change its inventory method to the FIFO basis for reporting purposes. The following information is available for net income for average cost and for FIFO, Year ended Net Income Using Average cost Net Income Using FIFO After Tax Difference After Tax Cumulative Effect December 31, 2X11 $235,000 $310,000 $75,000 $75,000 December 31, 2X12 $300,000 $376,000 $76,000 $151,000 December 31, 2X13 $310,000 $400,500 $90,500 $241,000 December 31, 2X14 $425,000 $535,000 $109,500 $351,000 December 31, 2X15 $500,000 $585,000 $85,000
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