Valuing Inventory at Lower-of-Cost-or-Market Gard Inc. has compiled the following information related to its five products. Costs of disposal are estimated to be 10% of selling price, and gross profit is estimated to be 25% of the selling price. Determine the value of inventory applying the lower-of-cost-or-market rule to each individual inventory item. Note: Round each amount to the nearest dollar.     #1 #2 #3 #4 #5 Estimated selling price $10 $20 $30 $40 $50 Original cost (LIFO) 60 80 90 100 110 Replacement cost 120 130 140 150 160 Inventory at the lower-of-cost-or-market Answer Answer Answer Answer Answer

Q: Required: What unit values should the company use for each of its products when applying the lower…

A: 1. While valuing the closing inventory, it should be valued at cost or Net realisable value (NRV)…

Q: Valuing Inventory at Lower-of-Cost-or-Market Gard Inc. has compiled the following information…

A: Calculation of Inventory Applying the Market Rule: Particulars12345  Original Cost (LIFO)…

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A: The lower of cost or market (LCM) method is an inventory valuation approach where the recorded cost…

Q: Vaughn Company follows the practice of pricing its inventory at LCNRV, on an individual-itern basis.…

A: ANSWERInventory should be valued at lower of cost or Net Realised Value (NRV).NRV = Estimated…

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A: Correct option:$6,310 Show formula version of the detailed solution sheet for a better understanding…

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A: Inventory valuationInventory valuation method is an accounting practice that is followed by each and…

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A: Net Realizable Value:  It refers to the amount which is expected to be collected by the firm from…

Q: Retail Inventory Method Harmes Company is a dothing store that uses the retail inventory method. The…

A: Cost Price   Retail Price    $   $  Beginning Inventory (January 1)   29,900     40,200…

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A: Hi studentSince there are multiple questions, we will answer only first question.Inventory is one of…

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A: We'll first calculate the cost of goods available for saleCost of Goods Available for Sale =…

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Q: get solutions

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A: LCNRV: The inventory is recorded at the purchase cost initially but, it is adjusted to the lower…

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A: Net realizable value = Selling price - Costs to sell

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A: The weighted average cost per unit is calculated as total cost divided by no. Of units.

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.