a. Determine the value of the inventory at the lower of cost or market applied to each item in the inventory. Inventory at the Lower of Cost or Market Product Inventory Quantity Cost per Unit Market Value per Unit (Net Realizable Value) Cost Market Lower of Cost or Market Model A Model A $Model A $Model A $Model A $Model A $Model A Model B Model B Model B Model B Model B Model B Model B Model C Model C Model C Model C Model C Model C Model C Model D Model D Model D Model D Model D Model D Model D Model E Model E Model E Model E Model E Model E Model E Total blank blank blank $Total $Total $Total
a. Determine the value of the inventory at the lower of cost or market applied to each item in the inventory. Inventory at the Lower of Cost or Market Product Inventory Quantity Cost per Unit Market Value per Unit (Net Realizable Value) Cost Market Lower of Cost or Market Model A Model A $Model A $Model A $Model A $Model A $Model A Model B Model B Model B Model B Model B Model B Model B Model C Model C Model C Model C Model C Model C Model C Model D Model D Model D Model D Model D Model D Model D Model E Model E Model E Model E Model E Model E Model E Total blank blank blank $Total $Total $Total
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 13E: Retail Inventory Method The following information relates to the retail inventory method used by...
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Question
On the basis of the following data, determine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in Exhibit 10.
| Product | Inventory Quantity |
Cost Per Unit |
Market Value per Unit (Net Realizable Value) |
|---|---|---|---|
| Class 1: | |||
| Model A | 25 | $113 | $127 |
| Model B | 13 | 274 | 289 |
| Model C | 17 | 217 | 195 |
| Class 2: | |||
| Model D | 31 | 70 | 59 |
| Model E | 39 | 61 | 45 |
Question Content Area
a. Determine the value of the inventory at the lower of cost or market applied to each item in the inventory.
Product |
Inventory Quantity |
Cost per Unit |
Market Value per Unit (Net Realizable Value) |
Cost |
Market |
Lower of Cost or Market |
|---|---|---|---|---|---|---|
| Model A | Model A | $Model A | $Model A | $Model A | $Model A | $Model A |
| Model B | Model B | Model B | Model B | Model B | Model B | Model B |
| Model C | Model C | Model C | Model C | Model C | Model C | Model C |
| Model D | Model D | Model D | Model D | Model D | Model D | Model D |
| Model E | Model E | Model E | Model E | Model E | Model E | Model E |
| Total | blank | blank | blank | $Total | $Total | $Total |
Question Content Area
b. Determine the value of the inventory at the lower of cost or market applied to each class of inventory.
Product |
Inventory Quantity |
Cost per Unit |
Market Value per Unit (Net Realizable Value) |
Cost |
Market |
Lower of Cost or Market |
|---|---|---|---|---|---|---|
| Class 1: | blank | blank | blank | blank | blank | blank |
| Model A | Model A | $Model A | $Model A | $Model A | $Model A | blank |
| Model B | Model B | Model B | Model B | Model B | Model B | blank |
| Model C | Model C | Model C | Model C | Model C | Model C | blank |
| Subtotal | blank | blank | blank | $Subtotal | $Subtotal | $Subtotal |
| Class 2: | blank | blank | blank | blank | blank | blank |
| Model D | Model D | Model D | Model D | $Model D | $Model D | blank |
| Model E | Model E | Model E | Model E | Model E | Model E | blank |
| Subtotal | blank | blank | blank | $Subtotal | $Subtotal | Subtotal |
| Total | blank | blank | blank | $Total | $Total | $Total |
Question Content Area
c. Determine the value of the inventory at the lower of cost or market applied to total inventory.
Product |
Inventory Quantity |
Cost per Unit |
Market Value per Unit (Net Realizable Value) |
Cost |
Market |
Lower of Cost or Market |
|---|---|---|---|---|---|---|
| Model A | Model A | $Model A | $Model A | $Model A | $Model A | blank |
| Model B | Model B | Model B | Model B | Model B | Model B | blank |
| Model C | Model C | Model C | Model C | Model C | Model C | blank |
| Model D | Model D | Model D | Model D | Model D | Model D | blank |
| Model E | Model E | Model E | Model E | Model E | Model E | blank |
| Total | blank | blank | blank | $Total | $Total | $Total |
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