The Company uses lower-of-cost-or-market approach. The replacement cost of an inventory item is $75. Net realizable value is $82.50. Net realizable value less a normal profit margin is $69. The cost of the item is $76.50. The inventory item would be valued at:

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: APOL Company provided the following information related to the ending inventory of its Product X:…

A: Inventory to be reported in the Statement of financial position = Lower of cost and Net realizable…

Q: Oriole Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an…

A: According to the lower-of-cost or market, the company should report the inventory based on cost or…

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: APOL Company provided the following information related to the ending inventory of its Product X:…

A: Inventory to be reported in the Statement of financial position = Lower of cost and Net realizable…

Q: Crane Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an…

A: Lower-of-cost-or-market = Lower of cost and Net realizable value where, Net realizable value =…

Q: Given the following data for Al-Madar co. for 2021: Inventory at Cost (31/12/2021) 22000 Inventory…

A: Cost of goods sold means the cost incurred on the goods which has been sold out. This figure can be…

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

A: Lower-of-cost-or-market value:   The lower-of-cost-or-market value is a method which requires the…

Q: Splish Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an…

A: If current replacement cost is between Ceiling (NRV) and floor value (NRV-normal profit) then Market…

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

A: Compute the total cost and total market value of all items and select the lower of cost and market…

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: Wangerin Company follows the practice of pricing its inventory at the lower‐of‐cost‐or‐market, on an…

A: Workings: If Replacement cost is between NRV ( Net Realizable value ) and Floor value then Market…

Q: Marin, Inc. values its inventory at the lower-of-LIFO-cost-or-market. The following information is…

A: A corporation must record the cost of inventory at the lower of the original cost or the current…

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…

Q: APOL Company provided the following information related to the ending inventory of its Product X:…

A: Inventory to be reported in the Statement of financial position = Lower of cost and Net realizable…

Q: Bramble Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an…

A: Lower-of-cost-or-market = Lower of cost and Net realizable value where, Net realizable value =…

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

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

Q: Smmons Inc. uses the lower of cost on meket method to valesinventory that is accounted or using he…

A: Inventory valuation method includes: First-in, First-Out (FIFO) Last-in, Last-Out (LIFO) Average…

Q: $3.36     $5.04     $0.39     $1.40   1333   1,500     3.02     2.58     3.92     0.56     0.56…

A: Item No. Quantity Cost per Unit Cost to Replace Estimated Selling Price Cost of Completion and…

Q: 33. What is the estimated fire loss if 000 Company appies the conservative retail approach? 34. What…

A:

Q: Skysong, Inc. values its inventory at the lower-of-LIFO-cost-or-market. The following information is…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Swing Ltd uses FIFO for its inventory, which is valued at $21,000. It is considering a change to…

A: Inventory should be valued at cost or Net realisable value.

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

A: Particulars No. of units Rate per unit Total cost 9,500 units sold 8,000 $40 $320,000…

Q: Moore Company uses the LIFO cost flow assumption and carries Product A in inventory on December 31,…

A: Solution: Unit cost = $9,50 Replacement cost = $6.50 per unit NRV per unit  =$10 - $1 = $9 per unit…

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

A: Net realizable value=Selling Price-Selling cost=$34-$5=$29

Q: Serendipity Company uses the first-in, first-out retail method of inventory valuation. The following…

A: There are different method which are applicable to Calculation of Ending inventory cost by using…

Q: Marigold Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an…

A: Inventory is classified as: Raw material Work in process Finished goods In the financial…

Q: The cost of goods sold for Veltron International last year amounted to $534,600, and the average…

A: The inventory turnover ratio can be calculated by dividing the cost of goods sold by average…

Q: A company has the following per unit original costs and market values for its inventory. Lower of…

A: Lower of cost or market value method is that method in which inventory is valued at cost value of…

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: Acme Enterprises, a hypothetical company, manufactures computers and prepares itsfinancial…

A: The effect of write down of inventory at it NRV in financial statements of Acme in 2008 will be as…

Q: Stiles Corporation uses the FIFO cost flow assumption and is in the process of applying the LCNRV…

A: LCNRV Means lower of cost or net realisable value method where cost means historical cost and net…

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

A: Step taken for computing the inventory valuation has been shown as above.

Q: The Bar Corporation applies the lower of cost or netrealizable value (NRV) inventory Data regarding…

A: Net Realizable Value (NRV) = Selling price - Estimated costs to complete            Therefore in…

Q: Sheffield Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on…

A: Item No.  Cost to replace in $    (a)  (b)** in $      (c) in $    (d) in $  Cost per unit…

Q: Given the following data for AI-Madar co. for 2021: Inventory at Cost (31/12/2021) Inventory at NRV…

A: Cost of goods sold = sales - Gross profit

Q: Management of Tarry Company takes the position that under the lower-of-cost-or-market rule, the two…

A: In the lower of cost or market (LCM) inventory valuation method, the inventory of the company…

Q: Swing Ltd uses FIFO for its inventory, which is valued at $21,000. It is considering a change to…

A: Inventory is either sold or kept as ending inventory. Sold inventory involves the Cost of goods…

Q: If the purchases total P240,000 and the ending inventory is bigger than the beginning inventory by…

A: Cost of goods sold  = opening stock  + purchases  - closing stock

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 December 31,2016 inventory of Gwynn Company consisted of three products, for which certain…

A: Introduction Net Realizable Value is the cash that compnay expects to receive at the end. As far as…

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

A: In oder to compute the value of inventory we have to determine the market value and cost. The value…

Q: Pertaining below is information pertaining to Polyphemos Corporation: Cost P 24,000 190,000 26,000…

A: In the Average cost method of inventory valuation, the Cost-to-retail percentage is computed for all…

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

A: Inventory refers to all items of goods, merchandise, and materials held by a company or business for…

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…

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.