ALOHA Company determined the following information for an inventory at year end. Historical Cost P 2,000,000 Current Replacement Cost P 1,400,000 Net Realizable Value P 1,800,000 Net Realizable Value less a normal profit margin P 1,700,000 Fair Value P 1,900,000 What amount should be reported as inventory at year end? a. P 1,400,000 b. P 1,700,000 c. P 1,800,000 d. P 1,900,000
ALOHA Company determined the following information for an inventory at year end. Historical Cost P 2,000,000 Current Replacement Cost P 1,400,000 Net Realizable Value P 1,800,000 Net Realizable Value less a normal profit margin P 1,700,000 Fair Value P 1,900,000 What amount should be reported as inventory at year end? a. P 1,400,000 b. P 1,700,000 c. P 1,800,000 d. P 1,900,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 26CE: Lower of Cost or Market The accountant for Murphy Company prepared the following analysis of its...
Related questions
Topic Video
Question
ALOHA Company determined the following information for an inventory at year end.
Historical Cost P 2,000,000
Current Replacement Cost P 1,400,000
Net Realizable Value P 1,800,000
Net Realizable Value less a normal profit margin P 1,700,000
Fair Value P 1,900,000
What amount should be reported as inventory at year end?
a. P 1,400,000
b. P 1,700,000
c. P 1,800,000
d. P 1,900,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning