calculate the value of this companys inventory at the lower of cost or market
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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
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- Sienna Company uses the FIFO cost flow assumption. Sierra has inventory with a selling price of 100, packaging costs of 5, and transportation costs of 10. Siennas normal profit margin is 20. However, due to limited supply of the product from the manufacturer, it would cost Sienna 80 to replace the inventory. What amount should be used as the market value? a. 65 b. 80 c. 85 d. 100Lower of Cost or Market Garcia Company uses FIFO, and its inventory at the end of the year was recorded in the accounting records at $17,800. Due to technological changes in the market, Garcia would be able to replace its inventory for $16,500. Required: 1. Using the lower of cost or market method, what amount should Garcia report for inventory on its balance sheet at the end of the year? 2. Prepare the journal entry required to value the inventory at the lower of cost or market.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.
- A company's normal selling price for its product is $29 per unit. However, due to market competition, the selling price has fallen to $24 per unit. This company's current Inventory consists of 110 units purchased at $25 per unit. Replacement cost has fallen to $22 per unit. Calculate the value of this company's Inventory at the lower of cost or market. a. $2,520. b. $2,750. c. $2,640. d. $2,420. e. $2,370.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 AirA 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 $10.00
- Marzan Company uses LIFO and a perpetual inventory system for its leading product, Z. Given the historical cost of product Z is $22, the selling price of product Z is $25, costs to sell product Z are $3, the replacement cost for product Z is $21, and the normal profit margin is 40% of sales price, what is the amount that should be used to value the inventory under the lower-of-cost-or-market method? O $18 $20 $21 $22Ray 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 #2 $ 18 Product #1 Historical cost $10 Replacement cost 11 14 Estimated cost to dispose Estimated selling price 20 33 In pricing its ending inventory using the lower-of-cost-or-market, what unit values, rounded to the nearest dollar, should Oslo use for products #1 and #2, respectively? Example of Answer: 4000 (No comma, space, decimal point, or $ sign) Product 1 = Product 2 =Calculate 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)
- 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 $27.00normation about an item of inventory is given below: Inventory cost Replacement cost Selling price Disposal costs Normal profit margin as a % of selling price $56 $62 None of these answers $65 If a company is using LIFO, the appropriate market value to be used in the lower-of-co market test for impairment is: 60 $80 $60 O$41 $62 $80 $15 30%Marr 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 complete/dispose Estimated selling price $40 45 10 80 $70 54 26 130 In pricing its ending inventory using the lower-of-cost-or-market, what unit values should Marr use for products #1 and #2, respectively? a. $40.00 and $60.00 b. $46.00 and $65.00 c. $40.00 and $65.00 d. $45.00 and $54.00
