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 $27.00
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 $27.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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 $27.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8b21c1fc-cf31-4889-bd23-2a95026e7424%2F1a9c785c-fcf5-4103-868d-1ad4e29f673c%2Fc8l1dv.png&w=3840&q=75)
Transcribed Image Text: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 $27.00
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