calculate the value of this companys inventory at the lower of cost or market

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

A: The ending inventory is the inventory left in the stock at end.

Q: Cheap Sheep Company developed the following information about its inventories in applying the lower…

A: Inventory: It can be defined as all the goods, items, materials, and merchandise that are held by a…

Q: EOQ model, Ram Corporation determined the economic order quantity for a merchandise item to be 800…

A: Average of EOQ=EOQ2=8002=400 units

Q: Wildhorse Sales Company uses the retail inventory method to value its merchandise inventory. The…

A: 1. COST = BEGINNING INVENTORY + PURCHASES + FREIGHT IN  2. RETAIL = BEGINNING INVENTORY + PURCHASES…

Q: Moss Co. has determined its year-end inventory on a FIFO basis to be $400,000. Information…

A: Given:Estimated selling price = $408,000Estimated costs to sell = $20,000

Q: SLR Corporation hos 500 units of each of its two products in its yeor-end inventory. Per unit dsta…

A: Answer: In case of Product 2 Cost =$37 Replacement Cost=$29 Net Realisable Value= Selling Price -…

Q: l profit margin 2,400   a. Determine the net realizable value under the LCNRV rule. b. Determine…

A: Net Realizable Value:  It refers to the amount which is expected to be collected by the firm from…

Q: Answer all questions. Ch.6-4

A: Please find the solution along with the detailed calculation.

Q: Win Company, which uses the FIFO inventory method, had 300,000 units in inventory at the beginning…

A: The correct option is  C. $5,000,000

Q: Universal Enterprise sells a product that cost $450 per unit and has a monthly demand of 5,000…

A: The question is based on the concept of Cost Accounting.

Q: Seven Sea Corporation sells Ovens for an average of OMR 50, and which cost OMR 25. This is a…

A: The ending inventory is the inventory left with the business at year end.

Q: Vaughn Company's inventory records show the following data: Units Unit Cost Inventory, January 1…

A: Meaning of LIFO  Last in, first out (LIFO) is a method used to account for inventory that records…

Q: Allison Co. has a beginning inventory costing $90,000 and an ending inventory costing $120,000.…

A: Inventory Turnover Ratio = (Cost of merchandise Sold / Average Inventory)

Q: A company's normal selling price for Its product is $30 per unit. However, due to market…

A: As per lower of cost or market concept, the inventory is reported at lower of cost or net realizable…

Q: ABC Corporation sells just one product. At the end of fiscal year 2017, ABC applies the…

A: Writing down the value of inventory by $300 decreases the value of total assets by $300 and the…

Q: A company's normal selling price for its product is $25 per unit. However, due to market…

A: Introduction: First in, first out (FIFO) is an accounting approach in which assets purchased or…

Q: Tristan, Inc., uses the LIFO cost-flow assumption to value inventory. It began the current year with…

A: Last in first out (LIFO) method of inventory valuation gives preference to value of inventory…

Q: Seven Sea Corporation sells Ovens for an average of OMR 50, and which cost OMR 25. This is a…

A: This method is generally used by retailers to estimate ending inventory.   Under this method…

Q: Allied Products maintains a large inventory. The company has used the LIFO inventory method for many…

A: Allied products maintain a large inventory and use the LIFO inventory method for inventory…

Q: The Inventory of Royal Decklng consisted of five products. Information about the December 312 lows…

A: Product Cost Selling price Sales commission (15% of the selling price) Shipping cost ( 5% of the…

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: Below is information related to Company's Inventory: Price per Unit Total Units ** *** *** *** ****…

A: Inventory valuation is an accounting practice that is used by companies in order to determine the…

Q: A company’s normal selling price for its product is $21 per unit. However, due to market…

A: "Lower of cost or market" is an inventory valuation method under which the value of the inventory is…

Q: Lower of Cost or Market Moore Company uses the LIFO inventory method and carries Product A in…

A: Ceiling , Net realizable value  = Selling price  - cost to sell =$10 -$1 =$9

Q: Use the following information for Problems 32 and 33.Tristan, Inc., uses the LIFO cost-flow…

A: Total goods available for sale = Beginning inventory + Purchases = 2,000 units + 8,000 units =…

Q: Willie Nelson's Boots uses the conventional retail method to estimate ending inventory. Cost data…

A: Calculation of Cost to retail ratio: Cost of Inventory / Retail price of Inventory

Q: Herman Company has three products in its ending inventory. Specific per unit data at the end of the…

A: Answer -    NRV = Selling price -  disposal costs.   NRV − NP = NRV -  normal profit margin.…

Q: Willie Nelson's Boots uses the conventional retail method to estimate ending inventory. Cost data…

A: Cost to retail percentage is calculated by dividing the cost of goods available for sale by the…

Q: Inventory Costing Methods—Perpetual Method  The following information is for the Vista Company; the…

A: Inventory: It is the goods and material a business hold to sell. There are two methods for recording…

Q: Below is information related to Company's Inventory: Units Price per Unit Total *** ********** ****:…

A: Average cost per unit = Cost of goods available for sale/Total units available for sale

Q: Octopus Company provides you with the following information regarding its inventory: Maximum lead…

A: A reorder point (ROP) is the point at which your inventory must be replenished. In other words, it…

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 Manama Company. Cost Retail $600,000 3,700,000 170,000…

A: Working note :- 1)  computation of Ending inventory at cost :- Total cost as per cost inventory…

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

A: a. Calculate ceiling limit and floor limit for skis: Ceiling limit = Selling price of inventory -…

Q: Herman Company has three products in its ending inventory. Specific per unit data at the end of the…

A: Inventory to be valued at  Cost or NRV  which ever is lower

Q: A company's normal selling price for its product is $26 per unit. However, due to market…

A: SOLUTION- LOWER OF COST OR MARKET   IS AN INVENTORY VALUATION METHOD UNDER WHICH THE VALUE OF…

Q: The management of Aspen company believes that under the lower of cost or market rule, the 2 items…

A: a.   Merchandise inventory to be shown at cost or market price(NRV) which ever is lower .…

Q: Two years ago Angle Company starting using dollar-value LIFO for costing its inventory. The first…

A: LIFO is an acronym that stands for last-in, first-out. This is a stock valuation approach that…

Q: At year-end 20X8, Ancho Canned Chile has 8,000 units on hand at a weighted-average cost of $13 per…

A: Ending inventory is computed by adding the beginning inventory and purchases and then subtracting…

Q: SLR Corporation has 1,000 units of each of its two products in its year-end inventory. Per unit data…

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

Q: A company that started trading on 1 January 2011 without any opening inventory sold 20,000 items on…

A: Gross Profit = Sales - Cost of goods sold Total number of units available for sale = 12000 + 9000 +…

Q: End of Year data suggests that noise Ltd. has 6000 items of product A and 2,000 of product B,…

A: Lets understand the basics. As per IAS 2 "Inventories", inventory needs to be valued at the cost of…

Q: A company normally sells it products for $20 per unit, which includes a profit margin of 25%.…

A: We have the following information: A company normally sells it products for $20 per unit Profit…

Q: Diane Company showed the following information on December 31,2014:     Cost   Retail Inventory,…

A: Cost to retail ratio = Totals for Cost / Totals for Retail price = 567000/1260000 = 45%

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.