The following information is given for Gator Company, who uses the FIFO method. Net Realizable NRV Minus Replacement Normal Item Quantity Cost Value Cost Profit 1 1 $17.70 $24.60 $18.00 $17.10 2 1 10.80 8.28 9.30 5.58 3 1 72.00 64.80 67.20 57.60 4 1 4.80 3.12 2.88 2.64 5 12.00 12.30 12.60 11.10 6 1 48.00 45.60 38.40 40.80 > Required: a. Determine the lower of cost or net realizable value for each inventory item for Gator Company. Item 1 N 3 4 5 6 17.70 8.28 64.80 2.88 X 12 V 40.80 X b. Determine the lower of cost or net realizable value for Gator Company's inventory if the lower of cost or net realizable value rule is applied to the total inventory. 146.46 X S
The following information is given for Gator Company, who uses the FIFO method. Net Realizable NRV Minus Replacement Normal Item Quantity Cost Value Cost Profit 1 1 $17.70 $24.60 $18.00 $17.10 2 1 10.80 8.28 9.30 5.58 3 1 72.00 64.80 67.20 57.60 4 1 4.80 3.12 2.88 2.64 5 12.00 12.30 12.60 11.10 6 1 48.00 45.60 38.40 40.80 > Required: a. Determine the lower of cost or net realizable value for each inventory item for Gator Company. Item 1 N 3 4 5 6 17.70 8.28 64.80 2.88 X 12 V 40.80 X b. Determine the lower of cost or net realizable value for Gator Company's inventory if the lower of cost or net realizable value rule is applied to the total inventory. 146.46 X S
Chapter7: Accounting Information Systems
Section: Chapter Questions
Problem 5MC: A document that asks you to return an identifying part of it with your payment is a(n) ________. A....
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Transcribed Image Text:The following information is given for Gator Company, who uses the FIFO method.
Net
Realizable
NRV
Minus
Replacement
Normal
Item
Quantity
Cost
Value
Cost
Profit
1
1
$17.70
$24.60
$18.00
$17.10
2
1
10.80
8.28
9.30
5.58
3
1
72.00
64.80
67.20
57.60
4
1
4.80
3.12
2.88
2.64
5
12.00
12.30
12.60
11.10
6
1
48.00
45.60
38.40
40.80
>
Required:
a. Determine the lower of cost or net realizable value for each inventory item for Gator Company.
Item
1
N
3
4
5
6
17.70
8.28
64.80
2.88 X
12 V
40.80 X
b. Determine the lower of cost or net realizable value for Gator Company's inventory if the lower of cost or net realizable value rule is applied to the total inventory.
146.46 X
S
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