To conduct: A lower-of-cost-or-market test for All-Kinds-of-cases assuming that it uses the individual item approach for LCM computations.

Question

Calm Ltd has the following data relating tò two investment projects, only one of which mayb e s e l e c t e d :The cost of capital is 10 per cent, and depreciation is calculated using straight line method.a . Calculate for each of the project:i. Average annual accounting rate of return on average capital investedi i . Net Present Valuei l l . I n t e r n a l R a t e o f Returnb. Discuss the relative merits of the methods of evaluation mentioned above in (a).Q.4a . In the context of process costing, discuss the following concepts briefly, i . Equivalent unitsNormal lossill. Abnormal lossi v. Joint productsV . By productsb . Discuss the different types of standard costing and objectives of standard costing.

Answer 1

Question

Chapter 10, Problem 10.15E

a.

To determine

To conduct: A lower-of-cost-or-market test for All-Kinds-of-cases assuming that it uses the individual item approach for LCM computations.

b.

To determine

To conduct: A lower-of-cost-or-market test for All-Kinds-of-cases assuming that it uses the group-by-group approach for LCM computations.

c.

To determine

To prepare: The journal entry to record P’s inventory to a lower of-cost-or-market (LCM) basis assuming that LCM is applied to individual items.

d.

To determine

To prepare: The journal entry to record the adjust P’s inventory for any reversal of its lower of-cost-or-market (LCM) adjustment.

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Calm Ltd has the following data relating tò two investment projects, only one of which mayb e s e l e c t e d :The cost of capital is 10 per cent, and depreciation is calculated using straight line method.a . Calculate for each of the project:i. Average annual accounting rate of return on average capital investedi i . Net Present Valuei l l . I n t e r n a l R a t e o f Returnb. Discuss the relative merits of the methods of evaluation mentioned above in (a).Q.4a . In the context of process costing, discuss the following concepts briefly, i . Equivalent unitsNormal lossill. Abnormal lossi v. Joint productsV . By productsb . Discuss the different types of standard costing and objectives of standard costing.

Please help me correct the wrong answers:

What are total assets at the end of the year?

Answer 2

Question

Chapter 10, Problem 10.15E

a.

To determine

To conduct: A lower-of-cost-or-market test for All-Kinds-of-cases assuming that it uses the individual item approach for LCM computations.

b.

To determine

To conduct: A lower-of-cost-or-market test for All-Kinds-of-cases assuming that it uses the group-by-group approach for LCM computations.

c.

To determine

To prepare: The journal entry to record P’s inventory to a lower of-cost-or-market (LCM) basis assuming that LCM is applied to individual items.

d.

To determine

To prepare: The journal entry to record the adjust P’s inventory for any reversal of its lower of-cost-or-market (LCM) adjustment.

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Answer 3

Question

Chapter 10, Problem 10.15E

a.

To determine

To conduct: A lower-of-cost-or-market test for All-Kinds-of-cases assuming that it uses the individual item approach for LCM computations.

b.

To determine

To conduct: A lower-of-cost-or-market test for All-Kinds-of-cases assuming that it uses the group-by-group approach for LCM computations.

c.

To determine

To prepare: The journal entry to record P’s inventory to a lower of-cost-or-market (LCM) basis assuming that LCM is applied to individual items.

d.

To determine

To prepare: The journal entry to record the adjust P’s inventory for any reversal of its lower of-cost-or-market (LCM) adjustment.

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Answer 4

Question

Chapter 10, Problem 10.15E

a.

To determine

To conduct: A lower-of-cost-or-market test for All-Kinds-of-cases assuming that it uses the individual item approach for LCM computations.

b.

To determine

To conduct: A lower-of-cost-or-market test for All-Kinds-of-cases assuming that it uses the group-by-group approach for LCM computations.

c.

To determine

To prepare: The journal entry to record P’s inventory to a lower of-cost-or-market (LCM) basis assuming that LCM is applied to individual items.

d.

To determine

To prepare: The journal entry to record the adjust P’s inventory for any reversal of its lower of-cost-or-market (LCM) adjustment.

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Answer 5

Chapter 10, Problem 10.15E

a.

To determine

To conduct: A lower-of-cost-or-market test for All-Kinds-of-cases assuming that it uses the individual item approach for LCM computations.

b.

To determine

To conduct: A lower-of-cost-or-market test for All-Kinds-of-cases assuming that it uses the group-by-group approach for LCM computations.

c.

To determine

To prepare: The journal entry to record P’s inventory to a lower of-cost-or-market (LCM) basis assuming that LCM is applied to individual items.

d.

To determine

To prepare: The journal entry to record the adjust P’s inventory for any reversal of its lower of-cost-or-market (LCM) adjustment.

Answer 6

Chapter 10, Problem 10.15E

a.

To determine

To conduct: A lower-of-cost-or-market test for All-Kinds-of-cases assuming that it uses the individual item approach for LCM computations.

Answer 7

Chapter 10, Problem 10.15E

a.

To determine

To conduct: A lower-of-cost-or-market test for All-Kinds-of-cases assuming that it uses the individual item approach for LCM computations.

Answer 8

b.

To determine

To conduct: A lower-of-cost-or-market test for All-Kinds-of-cases assuming that it uses the group-by-group approach for LCM computations.

Answer 9

b.

To determine

To conduct: A lower-of-cost-or-market test for All-Kinds-of-cases assuming that it uses the group-by-group approach for LCM computations.

Answer 10

c.

To determine

To prepare: The journal entry to record P’s inventory to a lower of-cost-or-market (LCM) basis assuming that LCM is applied to individual items.

Answer 11

c.

To determine

To prepare: The journal entry to record P’s inventory to a lower of-cost-or-market (LCM) basis assuming that LCM is applied to individual items.

Answer 12

d.

To determine

To prepare: The journal entry to record the adjust P’s inventory for any reversal of its lower of-cost-or-market (LCM) adjustment.

Answer 13

d.

To determine

To prepare: The journal entry to record the adjust P’s inventory for any reversal of its lower of-cost-or-market (LCM) adjustment.

Answer 14

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To conduct: A lower-of-cost-or-market test for All-Kinds-of-cases assuming that it uses the individual item approach for LCM computations.

Solution Summary: The author explains the lower-of-cost-or-market test for All-Kinds- of-cases assuming that it uses the individual item approach for LCM computations.

To conduct: A lower-of-cost-or-market test for All-Kinds-of-cases assuming that it uses the individual item approach for LCM computations.

To conduct: A lower-of-cost-or-market test for All-Kinds-of-cases assuming that it uses the group-by-group approach for LCM computations.

To prepare: The journal entry to record P’s inventory to a lower of-cost-or-market (LCM) basis assuming that LCM is applied to individual items.

To prepare: The journal entry to record the adjust P’s inventory for any reversal of its lower of-cost-or-market (LCM) adjustment.

Chapter 10 Solutions