A company's normal selling price for its product is $25 per unit. However, due to market competition, the selling price has fallen to $20 per unit. This company's current FIFO inventory consists of 150 units purchased at $21 per unit. Net realizable value has fallen to $18 per unit. Calculate the value of this company's inventory at the lower of cost or market. Multiple Choice $2.700. $2.800
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- When prices are rising (inflation), which costing method would produce the highest value for gross margin? Choose between first-in, first-out (FIFO); last-in, first-out (LIFO); and weighted average (AVG). Evansville Company had the following transactions for the month. Calculate the gross margin for each of the following cost allocation methods, assuming A62 sold just one unit of these goods for $10,000. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)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.A company's normal selling price for its product is $30 per unit. However, due to market competition, the selling price has fallen to $25 per unit. This company's current FIFO Inventory consists. of 300 units purchased at $26 per unit. Net realizable value has fallen to $23 per unit. Calculate the value of this company's inventory at the lower of cost or market. Multiple Choice $6,900. $7,500. $6,850. $7,800. $7,000. MacBook Air
- A company's normal selling price for its product is $26 per unit. However, due to market competition, the selling price has fallen to $21 per unit. This company's current FIFO inventory consists of 260 units purchased at $22 per unit. Net realizable value has fallen to $19 per unit. Calculate the value of this company's inventory at the lower of cost or market. Multiple Choice $4,890. $5,720. $5,040. $5,460. $4.940.Question: Given the historical cost of the product, Dominoe is $65, the selling price of product Dominoe is $90, costs to sell product Dominoe are $16, the replacement cost for product Dominoe is $60, and the normal profit margin is 20% of sales price, what is the amount that should be used to value the inventory under the lower-of-cost-or-market method? a. $65. b. $56. c. $60. d. $74.a company normal selling price for its product is 29 per unit however due to the market competition the selling price has fallen to 24 per unit this company current FIFO inventory consist of 290 units purchased at a 25 per unit net realizable value has fallen to 22 per units calculate the value of this companys inventory at the lower of cost or market 7250 6960 6480 6380 6330
- 4 Lynn Corporation has two products in its ending inventory, each accounted for at the lower of cost or market. A profit margin of 30% on selling price is considered normal for each product. Specific data with respect to each product follows: Product Product 2 Historical cost Replacement cost Estimated cost to dispose/complete Estimated selling price $30 27 13 60 $15 35 In pricing its ending inventory using the lower of cost or market, what unit values should Lynn use for products #1 and #2, respectively? a. $15.00 and $29.00 b. $19.50 and $29.00 c. $19.50 and $30.00 d. $18.00 and $27.00Do not use dollar signs in your answers. It your answer is a negative number, put a minus sign in front. What is the balance in ending inventory using a LIFO cost flow when you sell 2,300 units for $18 per unit? Date Source 1/1/2011 Beginning Inventory 2/1/2011 Purchase 3/1/2011 Purchase Total Goods Available for Sale 33,400 Units Purchased 950 800 1,500 3,250 Cost Per Unit $14 $10 $12 Total Cost $ 13,300 $ 8,000 $ 18,000 $39,300Flint Inc. has provided you with the following information. This company purchases Its Inventory from a supplier for cash and has only cash sales. Fint uses the average cost formula in a perpetual Inventory system. Increased competition has recently reduced the price of the product Date Apr. 1 6 8 15 20 27 Explanation Beginning inventory Purchases Sales Purchases Sales Purchases Units 50 Date 110 (130) 120 (120) 20 To record als Unit Cost $82 [To record coat of good old [To record sales) 90 To record the Inventory sold 71 Prepare all joumal entries for the month of April for Filint. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Do not round intermediate calculations. Round answers to 2 decimal places, eg. 5,275.25. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. Account Titles…
- A manufacturer has the following per-unit costs and values for its sole product: Cost $10.00 5.50 Current replacement cost Net realizable value 6.00 Net realizable value less normal profit 5.20 margin Under the first-in first-out (FIFO) cost method, what is the per-unit carrying value of inventory in the manufacturer's statement of financial position? O 55.20 $5.50 $6.00 $10.00Calculate the Lower-of-Cost-or-Market using the table below for Samson Goods, Inc. springs inventory. (1) Complete the table. Part # Cost Replacement Cost Net Realizable Value Normal Profit NRV less Normal Profit LCM SP17G $181,000 $ 152,000 $151,000 $15,000 SP23X 254,000 249,800 262,500 25,800 SP78A 205,400 214,000 206,000 10,200 Total (2) Prepare the journal entry to record the Allowance to Reduce Inventory to Market using the "Loss Method". $ $ (Record the adjustment to inventory due to decline in value)Read the following scenario and answer the question#13 and 14. The president of the Lamda wholesale company, which markets a single product, requests an expectation for the gross profit decline for 19B. The following information is available: 19A 19B Units P.U Value Total Units P.U Value Total Sales 25,000 $3.00 $75,000 24,000 $2.75 $6,000 Cost of sales 25,000 $2.38 24,000 $2.40 59.500 $15,500 57,600 $8,400 Question No. 13: Calculate cost variances Question No. 14: Calculate volume variances