Homework Answers
CALCULATION OF INVENTORY COST PER UNIT ON THE BASIS OF LOWER OF COST OR MARKET VALUE
Replacement Cost of Inventory = $ 13.32 Per Unit
Sales Price = $ 26.62 - $ 7.97 = $ 18.65 Per unit
Original Cost Price Per Unit = $ 25.59 Per Unit
Cost per unit will be taken as $ 13.32 per unit
Value of inventory = 2,860 Units X $ 13.32 Per unit
Value of inventory = $ 38,095
Answer = Option D = $ 38,095
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One inventory item has a sales price of $ 26.62 and selling expenses of $ 7.97....
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e. $124
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Select...
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Using the LCNRV Rule, the proper inventory amount for the balance
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Select one:
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Thank you !
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Scottsdale Corporation:
Using the LCM Rule, the proper inventory amount for the balance
sheet is:
Select one:
a. $98
b. $104
c. $111
d. $117
e. $124
2.
The following information is available for October for Jordan
Company:
A fire destroyed most of Jordan’s October 31 inventory warehouse,
leaving undamaged inventory with
a cost of $3,000. Using the gross profit method,
the estimated ending inventory destroyed by fire
is:
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Sierra Corporation:
Using the LCNRV Rule, the proper inventory amount for the balance
sheet is:
Select one:
a. $318
b. $321
c. $312
d. $319
e. $323
2.
Doyle Company discovered in 2019 that the ending inventories
reported on its financial statements were incorrect by the
following amounts:
2017 $60 understated
2018 $75 overstated
Indicate the error in 1/1/19 Retained Earnings:
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