The December 31, 2014 inventory of Gwynn Company consisted of four products, for which certain information is provided below. Pro Origin duc al Replace ment Estimated Expected t Cost Cost Disposal Cost Selling Normal Profit on Price Sales A $ 25.00 $ 22.00 $ 6.50 $ 40.00 20% B $ 42.00 $ 40.00 $ 12.00 $48.00 25% 0 $ 120.00 $ 115.00 $ 25.00 $ 190.00 30% D $ 18.00 $ 15.80 $ 3.00 $ 26.00 10% Using the lower-of-cost-or-market approach applied on an individual- item basis, compute the inventory valuation that should be reported for each product on December 31, 2014. Product A EA $ B $ C $ D EA $

Principles of Accounting Volume 1
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compute the inventory valuation that should be reported for each product on December 31, 2014.

The December 31, 2014 inventory of Gwynn Company consisted of four
products, for which certain information is provided below.
Pro
Origin
duc
al
Replace
ment
Estimated
Expected
t
Cost
Cost
Disposal
Cost
Selling
Normal
Profit on
Price
Sales
A
$ 25.00
$ 22.00
$ 6.50
$ 40.00
20%
B
$ 42.00
$ 40.00
$ 12.00
$48.00
25%
0
$ 120.00 $ 115.00
$ 25.00
$ 190.00
30%
D $ 18.00 $ 15.80
$ 3.00
$ 26.00
10%
Using the lower-of-cost-or-market approach applied on an individual-
item basis, compute the inventory valuation that should be reported for
each product on December 31, 2014.
Product
A
EA
$
B
$
C
$
D
EA
$
Transcribed Image Text:The December 31, 2014 inventory of Gwynn Company consisted of four products, for which certain information is provided below. Pro Origin duc al Replace ment Estimated Expected t Cost Cost Disposal Cost Selling Normal Profit on Price Sales A $ 25.00 $ 22.00 $ 6.50 $ 40.00 20% B $ 42.00 $ 40.00 $ 12.00 $48.00 25% 0 $ 120.00 $ 115.00 $ 25.00 $ 190.00 30% D $ 18.00 $ 15.80 $ 3.00 $ 26.00 10% Using the lower-of-cost-or-market approach applied on an individual- item basis, compute the inventory valuation that should be reported for each product on December 31, 2014. Product A EA $ B $ C $ D EA $
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