ABC Inc. has the following information related to an item in its ending inventory. Predator Laptop has a cost of P502, a selling price of P568, a cost to complete of P53, and a cost to sell of P38. What is the lower-of-cost-or-net realizable inventory value for Predator Laptop? A. P477 B. P515 C. P502 D. P530

Q: n the following information for the Network Company: Date                                    Cost…

A: The right answer is option C c. Inventory       1,050              Income Summary    1,050

Q: Using the lower of cost or market, what should the total inventory value be for the following items:…

A: Item A cost=Quantity×Cost per unit=186×$6=$1,116

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Q: The following information is for Lawrence Company, who uses the LIFO method: ​ ​ NRV Minus Net…

A: S.no               Cost     Market value  (cost or market value ) which is lower  a $3.40…

Q: On the basis of the following data, determine the value of the inventory at the lower of cost or…

A: Inventory refers to the value of stock which is the goods and materials quantity that a business…

Q: If the cost of an item of inventory is $52.00 and the current replacement cost is $70.00, what is…

A: As per lower of cost or market price method, we need to record the inventory at the lowest value of…

Q: Lily Company applied FIFO to its inventory and got the following results for its ending inventory.…

A: Name of Item A B C  D A x D Number of units Cost per unit Net Realizable Value per unit Lower of…

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Q: Sunland Frame Camera Shop uses the lower-of-cost-or-net realizable value basis for its inventory.…

A: Inventory must be recorded at the lesser of its cost or the sum at which it may be sold under the…

Q: If Wrecking Ball uses a periodic inventory system, the cost of the inventory using the periodic…

A: Introduction: Average cost method is one of the method of inventory valuation. While applying…

Q: Use the following information to compute ending inventory in a perpetual inventory system which…

A: The correct option is  C.) $494

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A: As per US GAAP (Generally accepted accounting principles), inventory is required to valued at lower…

Q: If the company had used the FIFO inventory costing method, cost of goods sold under FIFO would have…

A: Inventory Valuation Methods are methods of valuation of inventory. There are three methods of…

Q: Presented below is information related to Tamarisk Inc.'s inventory. (per unit) Skis Boots Parkas…

A: Net realizable value of Skis =Salling price of Skis - Cost to sell of Skis -Cost to complete of…

Q: Stiles Corporation uses the LIFO cost flow assumption and is in the process of applying the LCM rule…

A: LIFO: LIFO stands for Last-In, First-Out. In this method inventory purchased at last will be sell…

Q: Your answer is incorrect. For both FIFO and LIFO, calculate the sum of ending inventory and cost of…

A: FIFO is first in first out inventory valuation method under which inventories which are purchased…

Q: Ross Electronics has one product in its ending inventory. Per unit data consist of the following:…

A: per unit of product in inventory = $20 Replacement cost = $18 Selling price = $30 Selling cost = $4…

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A: The question is related to Valuation of Inventories. The Inventory Should be Valued at lower of…

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Q: The inventory of Carla Vista Company on December 31, 2020, consists of the following items. Cost per…

A: LCNRV - Lower of cost and net realizable value, applying this method for each item value of…

Q: ABC Co. uses a perpetual inventory system and uses the LIFO cost flow assumption. Calculate the…

A: LIFO: LIFO stands for Last-In, First-Out. As its name suggest, this method assumes that the most…

Q: Milo Corporation has two products in its ending inventory, each accounted for at the lower of cost…

A: Designated market value is the middle value of the three components that is the Net realisable…

Q: Use the lower-of-cost-or-market rule to determine the value of the following inventory for Bargain…

A: As per the lower of cost or market basis method, we need to consider the inventory value at a lower…

Q: Use the lower-of-cost-or-market rule to determine the value (in $) of the following inventory for…

A: Solution:- Calculation of the value (in $) of the following inventory for Save-Mor Merchandisers as…

Q: he XYZ Company completed the following perpetual inventory transactions: May 1Beginning inventory20…

A: LIFO method under perpetual inventory method : In this method, the costs of last purchased items are…

Q: Crane Company applied FIFO to its inventory and got the following results for its ending inventory.…

A: Inventory valuation has different methods like FIFO, LIFO, weighted average, etc. The valuation can…

Q: Your answer is incorrect. Try again. The inventory of Nash Company on December 31, 2020, consists of…

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Q: A firm utilizes a periodic inventory cost system with a Last-In, First-Out (LIFO) cost flow…

A: LIFO Method: Last in, first-out (LIFO) is a system of accounting for inventory sales in which the…

Q: EFG Co. has 600 units in inventory that had been purchased for $22 each and that would currently…

A: Solution: Cost per unit of inventory = $22 Market price = $28.50 per unit According to accounting…

Q: Presented below is information related to Rembrandt Inc.’s inventory, assuming Rembrandt uses…

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Q: Ross Electronics has one product in its ending inventory. Per unit data consist of the following:…

A: Given:

Q: On the basis of the following data, determine the value of the inventory at the lower of cost or…

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Q: Hunt Enterprises has the following inventory information available: Product Category Cost Selling…

A: Under lower of cost or market methods, the business records the inventory at the lower value…

Q: On the basis of the following data, determine the value of the inventory at the lower of cost or…

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Presented below is information related to Bonita Inc.’s inventory. (per unit)   Skis   Boots…

A: Net realizable value = Selling price - cost to sell - cost to complete.  The inventory should be…

Q: under Corporation has the following four items in its ending inventory: Item   Cost   Estimated…

A: Net realisable value is the price of the inventory, after reducing the estimated costs related to…

Q: The following information on cost and net realizable value of Bramble Ltd's various inventory…

A: Lets understand the basics. As per IAS 2 "Inventory", inventory should be recoded at cost or NRV…

Q: On the basis of the following data, determine the value of the inventory at the lower of cost or…

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Q: Blossom Camera Shop Inc. uses the lower-of-cost-or-net realizable value basis for its inventory. The…

A: Compute inventory amount to be reported on Blossom camera shop’s financial statements using LCNRV…

Q: (a), Your answer is partially correct. Try again. Compute the cost of the ending inventory and the…

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Q: Pharoah Company developed the following information about its inventories in applying the…

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Q: Ivanhoe Inc. has the following information related to an item in its ending inventory. Packit…

A: Net realizable value means the amount that could be received after deducted all incidental expenses…

Q: On the basis of the following data, determine the value of the inventory at the lower of cost or…

A: At the time of evaluating the inventory, the cost or market value whichever is lower is taken into…

Q: What is the lower-of-cost-or-net realizable value of the inventory?

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Q: The following data refer to Cambridge Company’s ending inventory:   Item Code Quantity Unit Cost…

A: The lower of cost or market rule states that the firm should recognised the inventory at lower of…

Q: The following data refer to Jacket Company’s ending inventory:   Item code Quantity Unit Cost…

A: Given,   Item code Quantity Unit Cost Unit Market Small 100   $114   $116   Medium 420   76…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.