As of 12-31-15, Acme Company has three different inventory items on hand. Data on the three items follows: ItemQuantityon handUnit cost(Acme uses LIFO)ReplacementcostNormalprofitExpectedselling priceEstimateddisposal costsA75$405$625$750$1,500$100B24$310$300$230$400$25C51$775$800$300$1,000$250Using the lower-of-cost-or-market approach applied on an individual-item basis, determine if Acme needs to make an entry to write her inventory down. If so, prepare the entry Acme should make

Name: As of 12-31-15, Acme Company has three different inventory items on ha
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Description: As of 12-31-15, Acme Company has three different inventory items on hand. Data on the three items follows: ItemQuantityon handUnit cost(Acme uses LIFO)ReplacementcostNormalprofitExpectedselling priceEstimateddisposal costsA75$405$625$750$1,500$100B24

Hence, NRV for item A, item B and item C is $1,400,$375 and $750 respectively.NRV for each item is…

Answered: As of 12-31-15, Acme Company has three…

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section20.3: Estimating Inventory

Problem 1OYO

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As of 12-31-15, Acme Company has three different inventory items on hand. Data on the three items follows:

*Item*	*Quantity* *on hand*	*Unit cost* *(Acme uses LIFO)*	*Replacement* *cost*	*Normal* *profit*	*Expected* *selling price*	*Estimated* *disposal costs*
A	75	$405	$625	$750	$1,500	$100
B	24	$310	$300	$230	$400	$25
C	51	$775	$800	$300	$1,000	$250

Using the lower-of-cost-or-market approach applied on an individual-item basis, determine if Acme needs to make an entry to write her inventory down. If so, prepare the entry Acme should make

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