The December 31,2016 inventory of Gwynn Company consisted of three products, for which certain information is provided below. Products Original Replace Estimated Expected Normal Profit cost cost Disposal Selling on sales cost Price A $25 $22 $6.5 $40 20% B $42 $40 $12 $48 25% C $120 $115 $25 $190 30% Instructions Compute the inventory valuation that should be reported for each product on December 31, 2016. ( I ) The lower-of-cost-or-n et realizable value (2) The lower-of-cost-or-market
The December 31,2016 inventory of Gwynn Company consisted of three products, for which certain information is provided below.
Products Original Replace Estimated Expected Normal Profit
cost cost Disposal Selling on sales
cost Price
A $25 $22 $6.5 $40 20%
B $42 $40 $12 $48 25%
C $120 $115 $25 $190 30%
Instructions
Compute the
( I ) The lower-of-cost-or-n et realizable value
(2) The lower-of-cost-or-market
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