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Business Accounting INTERMEDIATE ACTG LOOSELEAF W/ ACCESS

LCM (Lower of Cost or Market) approach: It is an approach that values the inventory at historical cost or lesser than the market replacement cost. The replacement cost refers to the amount that could be realized from the sale of the inventory. NRV (Net Realizable Value) : It refers to an estimated selling price that a company expects to collect in the form of cash from the customers by the sale of inventory. The value is reduced by the expected cost of completion, disposal and transportation. Sales commission and shipping costs also included in the predictable cost. To Explain: whether LCM approach used by Company A to value its inventory differ from GAAP (Generally Accepted Accounting Principles).

LCM (Lower of Cost or Market) approach: It is an approach that values the inventory at historical cost or lesser than the market replacement cost. The replacement cost refers to the amount that could be realized from the sale of the inventory. NRV (Net Realizable Value) : It refers to an estimated selling price that a company expects to collect in the form of cash from the customers by the sale of inventory. The value is reduced by the expected cost of completion, disposal and transportation. Sales commission and shipping costs also included in the predictable cost. To Explain: whether LCM approach used by Company A to value its inventory differ from GAAP (Generally Accepted Accounting Principles).

Solution Summary: The author explains the LCM approach used by Company A to value its inventory does not differ from GAAP (Generally Accepted Accounting Principles) and IFRS (International Financial Reporting Standards).

INTERMEDIATE ACTG LOOSELEAF W/ ACCESS

INTERMEDIATE ACTG LOOSELEAF W/ ACCESS

10th Edition

ISBN: 9781264397488

Author: SPICELAND

Publisher: MCG

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Question

Chapter 9, Problem 2CCTC

To determine

LCM (Lower of Cost or Market) approach: It is an approach that values the inventory at historical cost or lesser than the market replacement cost. The replacement cost refers to the amount that could be realized from the sale of the inventory.

NRV (Net Realizable Value): It refers to an estimated selling price that a company expects to collect in the form of cash from the customers by the sale of inventory. The value is reduced by the expected cost of completion, disposal and transportation. Sales commission and shipping costs also included in the predictable cost.

To Explain: whether LCM approach used by Company A to value its inventory differ from GAAP (Generally Accepted Accounting Principles).

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Chapter 9, Problem 9.12DMP

Chapter 10, Problem 10.1Q

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Chapter 9 Solutions

INTERMEDIATE ACTG LOOSELEAF W/ ACCESS

Ch. 9 - Explain the (a) lower of cost or net realizable...Ch. 9 - What are the various levels of aggregation to...Ch. 9 - Describe the alternative approaches for recording...Ch. 9 - Explain the gross profit method of estimating...Ch. 9 - The Rider Company uses the gross profit method to...Ch. 9 - Explain the retail inventory method of estimating...Ch. 9 - Both the gross profit method and the retail...Ch. 9 - Define each of the following retail terms: initial...Ch. 9 - Explain how to estimate the average cost of...Ch. 9 - Prob. 9.10Q

Ch. 9 - Explain the LIFO retail inventory method.Ch. 9 - Discuss the treatment of freight-in, net markups,...Ch. 9 - Explain the difference between the retail...Ch. 9 - Prob. 9.14Q Ch. 9 - Prob. 9.15Q Ch. 9 - Explain the accounting treatment of material...Ch. 9 - Identify any differences between U.S. GAAP and...Ch. 9 - (Based on Appendix 9) Define purchase commitments....Ch. 9 - (Based on Appendix 9) Explain how purchase...Ch. 9 - Lower of cost or net realizable value LO91 Ross...Ch. 9 - Lower of cost or net realizable value LO91 SLR...Ch. 9 - Lower of cost or market LO91 [This is a variation...Ch. 9 - Lower of cost or market LO91 [This is a variation...Ch. 9 - Prob. 9.5BE Ch. 9 - Gross profit method; solving for unknown LO92...Ch. 9 - Retail inventory method; average cost LO93 Kiddie...Ch. 9 - Retail inventory method; LIFO LO93 Refer to the...Ch. 9 - Conventional retail method LO94 Refer to the...Ch. 9 - Conventional retail method LO94 Roberson...Ch. 9 - Lower of cost or net realizable value LO91 Herman...Ch. 9 - Lower of cost or net realizable value LO91 The...Ch. 9 - Lower of cost or market LO91 [This is a variation...Ch. 9 - Lower of cost or market LO91 [This is a variation...Ch. 9 - Prob. 9.11E Ch. 9 - Concepts; terminology LO91 through LO97 Listed...Ch. 9 - Prob. 9.1P Ch. 9 - Prob. 9.3P Ch. 9 - Prob. 9.8P Ch. 9 - Prob. 9.1DMP Ch. 9 - Prob. 9.3DMP Ch. 9 - Prob. 9.4DMP Ch. 9 - Prob. 9.5DMP Ch. 9 - Prob. 9.6DMP Ch. 9 - Prob. 9.7DMP Ch. 9 - Real World Case 98 Various inventory issues;...Ch. 9 - Prob. 9.9DMP Ch. 9 - Judgment Case 910 Inventory errors LO97 Some...Ch. 9 - Prob. 9.12DMP Ch. 9 - Prob. 2CCTC

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