item 1 cost 68 replacement cost 55 sales price. 100 selling costs 15 quantity 120 normal...
Homework Answers
- Inventory is valued at cost and net realisable value, whichever is lower. In present situation, the cost of item 1 is already given and the net realisable value will be the expected selling price reduced by any cost associated to realisation. Therefore, net realisable value will be :- 100 - 15 = 85/-
- Finally the value of Item-1 will be valued at 85 per unit and the total value will be 120 units X 85 = 10,200
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item 1
cost 68
replacement cost 55
sales price. 100
selling costs 15
quantity 120
normal...
Intermediate accounting Item Quantity Unit Cost Replacement Cost/Unit Estimated Selling Price/Unit Completion & Disposal Cost/Unit Normal...
Intermediate accounting Item Quantity Unit Cost Replacement Cost/Unit Estimated Selling Price/Unit Completion & Disposal Cost/Unit Normal Profit Margin/Unit A 1,700 $7.95 $8.90 $11.13 $1.59 $1.91 B 1,400 8.69 8.37 9.96 0.95 1.27 C 1,600 5.94 5.72 7.63 1.22 0.64 D 1,600 4.03 4.45 6.68 0.85 1.59 E 2,000 6.78 6.68 7.10 0.74 1.06 Greg Forda is an accounting clerk in the accounting department of Crane Co., and he cannot understand why the market value keeps changing from replacement cost to...
Part Four: Problem (15 points) HCH Corporation sells copying machines and replacement toners. HCH Corporation sells...
Part Four: Problem (15 points) HCH Corporation sells copying machines and replacement toners. HCH Corporation sells two models - Model A and Model B. HCH Corporation provided the following information regarding inventory at the end of the current year. Item Cost Number of Units Replacement Selling Cost Price Cost of Completion and Disposal Normal Profit 2,000 1.500 $155 $210 40 55 $20 $35 S170 1 0 1648 Model A Copying Machine Replacement Toner Model B Copying Machine Replacement Toner 3,400...
The following information pertains to an inventory item: Cost $12.00 Estimated selling price 13.60 Estimated disposal...
The following information pertains to an inventory item: Cost $12.00 Estimated selling price 13.60 Estimated disposal cost .20 Normal gross margin 2.20 Replacement cost 10.90 Under the lower-of-cost-or-market rule, this inventory item should be valued at 1. $10.70 2. $10.90 3. $11.20 4. $12.00
Given the historical cost of product Z is $42, the selling price of product Z is...
Given the historical cost of product Z is $42, the selling price of product Z is $47, costs to sell product Z are $3, the replacement cost for product Z is $43, and the normal profit margin is 40% of sales price, what is the amount that should be used to value the inventory under the lower-of-cost-or-market method? $43. $44. $40. $42.
Thank you ! The original cost of an item of inventory is above its replacement cost....
Thank you !
The original cost of an item of inventory is above its replacement cost. The item's replacement cost is below its net realizable value but is higher than its net realizable value minus a normal profit. Under the lower of cost or market method, the inventory item should be valued at Multiple Choice Net realizable value Original cost Replacement cost Net realizable value less normal profit margin
One inventory item has a sales price of $ 26.62 and selling expenses of $ 7.97....
One inventory item has a sales price of $ 26.62 and selling expenses of $ 7.97. The replacement cost of the item is $ 13.32 and the original cost was $ 25.59. The normal profit margin on this item is $ 1.70. If there are 2860 units on hand, at what amount will inventory be recorded on the balance sheet? Select one: a. $73187 ob. $48477 O c. $53339 d. $38095 Check
Item No. Quantity Cost per Unit Cost to Replace Estimated Selling Price Cost of Completion and...
Item No.
Quantity
Cost per Unit
Cost to Replace
Estimated Selling Price
Cost of Completion and Disposal
Normal Profit
1320
1,400
$3.84
$3.60
$5.40
$0.42
$1.50
1333
1,100
3.24
2.76
4.20
0.60
0.60
1426
1,000
5.40
4.44
6.00
0.48
1.20
1437
1,200
4.32
3.72
3.84
0.30
1.08
1510
900
2.70
2.40
3.90
0.96
0.72
1522
700
3.60
3.24
4.56
0.48
0.60
1573
3,200
2.16
1.92
3.00
0.90
0.60
1626
1,200
5.64
6.24
7.20
0.60
1.20
Company A follows the practice...
PLEASE, INCLUDE ALL THE MATHEMATICAL PROCEDURE. THANKS! HCH Corporation sells copying machines and replacement toners. HCH...
PLEASE, INCLUDE ALL THE MATHEMATICAL PROCEDURE. THANKS!
HCH Corporation sells copying machines and replacement toners. HCH Corporation sells two models - Model A and Model B. HCH Corporation provided the following information regarding inventory at the end of the current year. Cost of Completion and Disposal Normal Profit Cost S35 170 Item Number of Replacement Selling Units Cost Price Price Model A Copying Machine 2,000 $155 S210 Replacement Toner 1.500 401 55 Model B Copying Machine 3.400 2 15 235...
3) The Milton Bradley Company follows the practice of pricing its lower of cost or market...
3) The Milton Bradley Company follows the practice of pricing its lower of cost or market on an individual-item basis. They use Item D Item C Item B Item A $690 Selling price Cost $250 220 $160 $120 107 110 520 95 200 22 499 Replacement cost Selling expense Normal profit 105 45 15 25 10 80 40 20 Using the lower of cost or market rule, determine the proper unit value for balance sheet reporting proposes, for each of...
The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory is as follows:
The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory is as follows: Per UnitProductCostReplacement CostSelling PriceA$60$55$80B10090120C6075100D12090150E404850Selling costs consist of a sales commission equal to 10% of selling price and shipping costs equal to 5% of cost. The normal profit is 20% of selling price. Required:What unit value should Royal Decking use for each of its products when applying the lower of cost or market (LCM) rule to units of ending inventory? (Do not round intermediate calculations....
Part Four: Problem (15 points) HCH Corporation sells copying machines and replacement toners. HCH Corporation sells two models - Model A and Model B. HCH Corporation provided the following information regarding inventory at the end of the current year. Item Cost Number of Units Replacement Selling Cost Price Cost of Completion and Disposal Normal Profit 2,000 1.500 $155 $210 40 55 $20 $35 S170 1 0 1648 Model A Copying Machine Replacement Toner Model B Copying Machine Replacement Toner 3,400...
Given the historical cost of product Z is $42, the selling price of product Z is $47, costs to sell product Z are $3, the replacement cost for product Z is $43, and the normal profit margin is 40% of sales price, what is the amount that should be used to value the inventory under the lower-of-cost-or-market method? $43. $44. $40. $42.
Thank you !
The original cost of an item of inventory is above its replacement cost. The item's replacement cost is below its net realizable value but is higher than its net realizable value minus a normal profit. Under the lower of cost or market method, the inventory item should be valued at Multiple Choice Net realizable value Original cost Replacement cost Net realizable value less normal profit margin
One inventory item has a sales price of $ 26.62 and selling expenses of $ 7.97. The replacement cost of the item is $ 13.32 and the original cost was $ 25.59. The normal profit margin on this item is $ 1.70. If there are 2860 units on hand, at what amount will inventory be recorded on the balance sheet? Select one: a. $73187 ob. $48477 O c. $53339 d. $38095 Check
Item No.
Quantity
Cost per Unit
Cost to Replace
Estimated Selling Price
Cost of Completion and Disposal
Normal Profit
1320
1,400
$3.84
$3.60
$5.40
$0.42
$1.50
1333
1,100
3.24
2.76
4.20
0.60
0.60
1426
1,000
5.40
4.44
6.00
0.48
1.20
1437
1,200
4.32
3.72
3.84
0.30
1.08
1510
900
2.70
2.40
3.90
0.96
0.72
1522
700
3.60
3.24
4.56
0.48
0.60
1573
3,200
2.16
1.92
3.00
0.90
0.60
1626
1,200
5.64
6.24
7.20
0.60
1.20
Company A follows the practice...
PLEASE, INCLUDE ALL THE MATHEMATICAL PROCEDURE. THANKS!
HCH Corporation sells copying machines and replacement toners. HCH Corporation sells two models - Model A and Model B. HCH Corporation provided the following information regarding inventory at the end of the current year. Cost of Completion and Disposal Normal Profit Cost S35 170 Item Number of Replacement Selling Units Cost Price Price Model A Copying Machine 2,000 $155 S210 Replacement Toner 1.500 401 55 Model B Copying Machine 3.400 2 15 235...
3) The Milton Bradley Company follows the practice of pricing its lower of cost or market on an individual-item basis. They use Item D Item C Item B Item A $690 Selling price Cost $250 220 $160 $120 107 110 520 95 200 22 499 Replacement cost Selling expense Normal profit 105 45 15 25 10 80 40 20 Using the lower of cost or market rule, determine the proper unit value for balance sheet reporting proposes, for each of...
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