The following information is given for Gator Company, who uses the FIFO method. Item Quantity Cost Net Realizable Value Replacement Cost NRV Minus Normal Profit 1 1 $17.70 $24.60 $18.00 $17.10 2 1 10.80 8.28 9.30 5.58 3 1 72.00 64.80 67.20 57.60 4 1 4.80 3.12 2.88 2.64 5 1 12.00 12.30 12.60 11.10 6 1 48.00 45.60 38.40 40.80 Required: a. Determine the lower of cost or net realizable value for each inventory item for Gator Company. Item 1 2 3 4 5 6 b. Determine the lower of cost or net realizable value for Gator Company's inventory if the lower of cost or net realizable value rule is applied to the total inventory. $_______
The following information is given for Gator Company, who uses the FIFO method. Item Quantity Cost Net Realizable Value Replacement Cost NRV Minus Normal Profit 1 1 $17.70 $24.60 $18.00 $17.10 2 1 10.80 8.28 9.30 5.58 3 1 72.00 64.80 67.20 57.60 4 1 4.80 3.12 2.88 2.64 5 1 12.00 12.30 12.60 11.10 6 1 48.00 45.60 38.40 40.80 Required: a. Determine the lower of cost or net realizable value for each inventory item for Gator Company. Item 1 2 3 4 5 6 b. Determine the lower of cost or net realizable value for Gator Company's inventory if the lower of cost or net realizable value rule is applied to the total inventory. $_______
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter14: Decentralized Operations
Section: Chapter Questions
Problem 14.3E
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The following information is given for Gator Company, who uses the FIFO method.
| Item | Quantity | Cost | Net Realizable Value |
Replacement Cost |
NRV Minus Normal Profit |
| 1 | 1 | $17.70 | $24.60 | $18.00 | $17.10 |
| 2 | 1 | 10.80 | 8.28 | 9.30 | 5.58 |
| 3 | 1 | 72.00 | 64.80 | 67.20 | 57.60 |
| 4 | 1 | 4.80 | 3.12 | 2.88 | 2.64 |
| 5 | 1 | 12.00 | 12.30 | 12.60 | 11.10 |
| 6 | 1 | 48.00 | 45.60 | 38.40 | 40.80 |
Required:
a. Determine the lower of cost or net realizable value for each inventory item for Gator Company.
| Item | |
| 1 | |
| 2 | |
| 3 | |
| 4 | |
| 5 | |
| 6 |
b. Determine the lower of cost or net realizable value for Gator Company's inventory if the lower of cost or net realizable value rule is applied to the total inventory.
$_______
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