Wildhorse Company uses the LCM method, on an individual-item basis, in pricing its inventory Items because it uses LIFO to value its Inventory. The inventory at December 31, 2025, consists of products D, E, F, G, H, and I. Relevant per-unit data for these products appear below. Estimated selling price Cost Replacement cost Estimated selling expense Normal profit Item D $286 179 286 71 48 Item E $262 190 171 71 48 Item F $226 190 167 71 48 Item G $214 190 71 60 48 Item H $262 119 167 71 48 ItemI $214 86 71 71 48 Using the LCM rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2025, for each of the inventory items above.
Wildhorse Company uses the LCM method, on an individual-item basis, in pricing its inventory Items because it uses LIFO to value its Inventory. The inventory at December 31, 2025, consists of products D, E, F, G, H, and I. Relevant per-unit data for these products appear below. Estimated selling price Cost Replacement cost Estimated selling expense Normal profit Item D $286 179 286 71 48 Item E $262 190 171 71 48 Item F $226 190 167 71 48 Item G $214 190 71 60 48 Item H $262 119 167 71 48 ItemI $214 86 71 71 48 Using the LCM rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2025, for each of the inventory items above.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Wildhorse Company uses the LCM method, on an individual-item basis, in pricing its inventory Items because it uses LIFO to value its
inventory. The inventory at December 31, 2025, consists of products D, E, F, G, H, and I. Relevant per-unit data for these products
appear below.
Estimated selling price
Cost
Replacement cost
Estimated selling expense
Normal profit
Item D
Item E
Item F
Item G
Item H
Item I
$
$
$
$
Item D
$
$286
179
286
71
48
215
171
155
106
167
Item E
$262
95
190
171
71
48
Item F
$226
190
167
Using the LCM rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2025, for each of the
inventory items above.
71
48
Item G
$214
190
71
60
48
Item H
$262
119
167
71
48
ItemI
$214
86
71
71
48
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