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. Estimated selling price Original cost (LIFO) Replacement cost Inventory at the lower-of-cost-or-market $ Check #1 $198 135 150 $ #2 $228 144 210 #3 $246 180 147 $ #4 $300 189 198 $ #5 $390 270 249
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. Estimated selling price Original cost (LIFO) Replacement cost Inventory at the lower-of-cost-or-market $ Check #1 $198 135 150 $ #2 $228 144 210 #3 $246 180 147 $ #4 $300 189 198 $ #5 $390 270 249
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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.
Estimated selling price
Original cost (LIFO)
Replacement cost
Inventory at the lower-of-cost-or-market $
Check
#1
$198
135
150
$
#2
$228
144
210
#3
$246
180
147
$
#4
$300
189
198
$
#5
$390
270
249
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