help Inventory Write-DownPalmquist Company has five different inventory items and applies the inventory valuation rules on an individual item basis. The normal markup on all items is 20% of cost. The following information is obtained from the company's records:CostReplacement Cost Net Realizable Value$10.00$9.207.808.0015.0018.0025.00Item145Required:1Item231. Assume that Palmquist uses the FIFO cost flow assumption. Compute the correct inventory value under the lower of cost or net realizable value rule. Round your answers to the nearest cent.Lower ofCost or NRV45231Item2345$Units500400300200100Compute the total inventory value if the lower of cost or net realizable value is applied to each individual item.$16,900 X2. Assume that Palmquist uses the LIFO cost flow assumption. Compute the correct inventory value under the lower of cost or market rule. Round your answers to the nearest cent.Lower ofCost or Market9.20 ✓7.80 ✓$14 ✓17 ✓25.00 ✓$9.108.1013.5012.0025.5014.0017.0025.304,600 X3,120 X4,050 X2,680 X2,500 XCompute the total inventory value if the lower of cost or market is applied to each individual item.

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Description: help Inventory Write-DownPalmquist Company has five different inventory items and applies the inventory valuation rules on an individual item basis. The normal markup on all items is 20% of cost. The following information is obtained from the company

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Inventory Write-Down Palmquist Company has five different inventory items and applies the inventory valuation rules on an individual item basis. The normal markup on all items is 20% of cost. The following information is obtained from the company's records: Item Cost Replacement Cost Net Realizable Value $ 9.10 $ 9.20 8.10 7.80 13.50 14.00 12.00 17.00 25.50 25.30 1 2 3 4 5 Required: Item 1. Assume that Palmquist uses the FIFO cost flow assumption. Compute the correct inventory value under the lower of cost or net realizable value rule. Round your answers to the nearest cent. Lower of Cost or NRV 9.20 1 2 $ 3 4 5 Item $ 1 Units 500 400 300 200 100 2 3 4 5 $10.00 8.00 15.00 18.00 25.00 Compute the total inventory value if the lower of cost or net realizable value is applied to each individual item. 16,900 X $ 7.80 14 2. Assume that Palmquist uses the LIFO cost flow assumption. Compute the correct inventory value under the lower of cost or market rule. Round your answers to the nearest cent. Lower of Cost or Market 17 25.00 ✔ 4,600 X 3,120 X 4,050 X 2,680 X 2,500 X Compute the total inventory value if the lower of cost or market is applied to each individual item.

Inventory Write-Down Palmquist Company has five different inventory items and applies the inventory valuation rules on an individual item basis. The normal markup on all items is 20% of cost. The following information is obtained from the company's records: Item Cost Replacement Cost Net Realizable Value $ 9.10 $ 9.20 8.10 7.80 13.50 14.00 12.00 17.00 25.50 25.30 1 2 3 4 5 Required: Item 1. Assume that Palmquist uses the FIFO cost flow assumption. Compute the correct inventory value under the lower of cost or net realizable value rule. Round your answers to the nearest cent. Lower of Cost or NRV 9.20 1 2 $ 3 4 5 Item $ 1 Units 500 400 300 200 100 2 3 4 5 $10.00 8.00 15.00 18.00 25.00 Compute the total inventory value if the lower of cost or net realizable value is applied to each individual item. 16,900 X $ 7.80 14 2. Assume that Palmquist uses the LIFO cost flow assumption. Compute the correct inventory value under the lower of cost or market rule. Round your answers to the nearest cent. Lower of Cost or Market 17 25.00 ✔ 4,600 X 3,120 X 4,050 X 2,680 X 2,500 X Compute the total inventory value if the lower of cost or market is applied to each individual item.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.12AMCP

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