Please provide correct option for this accounting question Zeta Corp. has determined its year-end inventory on a FIFO basis to be $600,000.Information pertaining to that inventory follows:⚫ Estimated selling price: $610,000•Estimated cost of disposal: $25,000•Current replacement cost: $540,000Normal profit margin: $70,000Zeta applies the lower-of-cost-or-market (LCM) rule to its inventory. At year-end,what should be the net carrying value of Zeta's inventory?a. $600,000b. $585,000c. $540,000d. None of the above is correct

Step 1: Define Lower-of-Cost-or-Market (LCM) RuleThe LCM rule requires inventory to be reported at…

Answered: Zeta Corp. has determined its year-end…

SWFT Individual Income Taxes

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Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 67P

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Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net realizable value of 300, a normal profit margin of 35, and a current replacement cost of 250. Determine the amount per unit that should be used as the market value to apply the lower of cost or market rule to determine Blacks ending inventory.
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Moore Company uses the LIFO cost flow assumption and carries Product A in inventory on December 31, 2019, at its unit cost of 9.50. Because of a sharp decline in demand for the product, the selling price was reduced to 10.00 per unit. Moores normal profit margin on Product A is 2.00, disposal costs are 1.00 per unit, and the replacement cost is 6.50. Under the lower of cost or market rule, Moores December 31, 2019, inventory of Product A should be valued at a unit cost of: a. 6.50 b. 9.00 c. 7.00 d. 9.50
If Barcelona Companys ending inventory was actually $122,000, but the cost of consigned goods, with a cost value of $20,000 were accidentally included with the company assets, when making the year-end inventory adjustment, what would be the impact on the presentation of the balance sheet and income statement for the year that the error occurred, if any?
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Tristan, Inc., uses the LIFO cost-flow assumption to value inventory. It began the current year with 1,950 units of inventory carried at LIFO cost of $69 per unit. During the first quarter, it purchased 5,550 units at an average cost of $99 per unit and sold 6,400 units at $195 per unit. 1. Assume the company does not expect to replace the units of beginning inventory sold; it plans to reduce inventory by year-end to 500 units. What amount of cost of goods sold should be recorded for the quarter ended March 31?$608,100.$633,600.$646,400.$635,300. 2. Assume the company expects to replace the units of beginning inventory sold in April at a cost of $101 per unit and expects inventory at year-end to be between 1,500 and 2,000 units. What amount of cost of goods sold should be recorded for the quarter ended March 31?$608,100.$633,600.$646,400.$635,300.
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A company has determined its year-end inventory on a FIFO basis to be $600,000. Information pertaining to that inventory is as follows: Selling price Costs to sell Replacement cost $ 600,000 31,000 546,000 What should be the reported amount of the company's inventory?
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Moss Company has determined its December 31,2019 inventory on a FIFO basis to be P4,000,000. Information pertaining to that inventory follows: Estimated selling price Estimated cost of disposal Normal profit margin Current replacement cost Most records losses that result from applying the lower of cost or market rule. At December 31, 2019, what should be the net carrying value of Moss' inventory? 4,080,000 200,000 600,000 3,600,000
Moss Co. has determined its year-end inventory on a FIFO basis to be $400,000. Information pertaining to that inventory is as follows: Estimated selling price $408,000 Estimated costs to sell 20,000 What should be the book value of Moss’s inventory? a. $408,000 b. $380,000 c. $388,000 d. $400,000

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