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The following information for Tuell Company is available: Case 1 3 4 5 Cost $5.00 $5.00 $5.00 $5.00 $5.00 Net realizable value 5.10 5.50 4.80 4.30 4.75 Net realizable value less normal profit 4.80 5.40 4.70 4.00 4.60 Replacement cost 5.30 5.30 4.60 4.15 4.80 Required: 1. Assume Tuell uses the LIFO cost flow assumption. What is the correct inventory value in each of the preceding situations under U.S. GAAP? If required, round your answers to the nearest cent. Inventory Case value 1 2

The following information for Tuell Company is available: Case 1 3 4 5 Cost $5.00 $5.00 $5.00 $5.00 $5.00 Net realizable value 5.10 5.50 4.80 4.30 4.75 Net realizable value less normal profit 4.80 5.40 4.70 4.00 4.60 Replacement cost 5.30 5.30 4.60 4.15 4.80 Required: 1. Assume Tuell uses the LIFO cost flow assumption. What is the correct inventory value in each of the preceding situations under U.S. GAAP? If required, round your answers to the nearest cent. Inventory Case value 1 2

Intermediate Accounting: Reporting And Analysis
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 13E: Retail Inventory Method The following information relates to the retail inventory method used by...
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3 $ 4 $ 5 3. Assume that Tuell uses the average cost inventory cost flow assumption. What is the correct inventory value in each of the preceding situations if Tuell uses IFRS? If required, round your answers to the nearest cent. Inventory Case value 1 2 $ 3 4 5 $
Transcribed Image Text:3 $ 4 $ 5 3. Assume that Tuell uses the average cost inventory cost flow assumption. What is the correct inventory value in each of the preceding situations if Tuell uses IFRS? If required, round your answers to the nearest cent. Inventory Case value 1 2 $ 3 4 5 $
Inventory Write-Down The following information for Tuell Company is available: Case 1 2 4 5 Cost $5.00 $5.00 $5.00 $5.00 $5.00 Net realizable value 5.10 5.50 4.80 4.30 4.75 Net realizable value less normal profit 4.80 5.40 4.70 4.00 4.60 Replacement cost 5.30 5.30 4.60 4.15 4.80 Required: 1. Assume Tuell uses the LIFO cost flow assumption. What is the correct inventory value in each of the preceding situations under U.S. GAAP? If required, round your answers to the nearest cent. Inventory Case value 1 2 3 $4 4 $ 5 $ 2. Assume Tuell uses the average cost inventory cost flow assumption. What is the correct inventory value in each of the preceding situations under U.S. GAAP? If required, round your answers to the nearest cent. Inventory Case value 1. 2$ 3 $ 4 2$ 3. Assume that Tuell uses the average cost inventory cost flow assumption. What is the correct inventory value in each of the preceding situations if Tuell uses IFRS? If required, round your answers to the nearest cent.
Transcribed Image Text:Inventory Write-Down The following information for Tuell Company is available: Case 1 2 4 5 Cost $5.00 $5.00 $5.00 $5.00 $5.00 Net realizable value 5.10 5.50 4.80 4.30 4.75 Net realizable value less normal profit 4.80 5.40 4.70 4.00 4.60 Replacement cost 5.30 5.30 4.60 4.15 4.80 Required: 1. Assume Tuell uses the LIFO cost flow assumption. What is the correct inventory value in each of the preceding situations under U.S. GAAP? If required, round your answers to the nearest cent. Inventory Case value 1 2 3 $4 4 $ 5 $ 2. Assume Tuell uses the average cost inventory cost flow assumption. What is the correct inventory value in each of the preceding situations under U.S. GAAP? If required, round your answers to the nearest cent. Inventory Case value 1. 2$ 3 $ 4 2$ 3. Assume that Tuell uses the average cost inventory cost flow assumption. What is the correct inventory value in each of the preceding situations if Tuell uses IFRS? If required, round your answers to the nearest cent.
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Under US GAAP, the LIFO technique uses the lower of cost or market, whereas the other methods use the lower of cost or NRV. However, in IFRS, all methods just use lesser of cost or NRV. The distinction between IFRS with GAAP would be that GAAP prohibits writing up, whereas IFRS permits it.

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