Applying the lower of cost or market rule

Reference no: EM1352933

A. Ezekial Distribution Co. has calculated its December 31, 2007 inventory on a FIFO basis at $250,000. The following information pertains to that inventory:
Estimated selling price $255,000
Estimated cost of disposal 10,000
Normal profit margin 30,000
Current replacement cost 225,000
Ezekial records losses that result from applying the lower-of-cost-or-market rule. At December 31, 2007, the loss that Ezekial should recognize is

B. Summers Company had a gross profit of $360,000, total purchases of $420,000, and an ending inventory of $240,000 in its first year of operations as a retailer. Summers's sales in its first year must have been?

C. If an inventory unit has declined in value below original cost, but the market value exceeds net realizable value, the amount to be used for purposes of inventory valuation is?

Reference no: EM1352933

Questions Cloud

Elucidate why a system of marketable pollution permits lead : Elucidate why a system of marketable pollution permits leads to less costly pollution abatement and a higher concentration of polluted areas than a command-and-control system.

Hawthorne effect in organizational business : how individual difference affect the workplace, and can you help me discuss business Psychology's relationship to three learning theories

Find the thrust of the rocket : A rocket has an initial mass of 28,000 kg, of which 20 percent is the payload. It burns fuel at a rate of 185 kg/s and exhausts its gas at a relative speed of 1.8 km/s.

How run on gasoline occurs when consumers fears : A "run on gasoline" occurs when consumers' fears of gas shortages in the future lead them to demand more gasoline now. Using supply and demand analysis, which of the following is consistent with this situation.

Applying the lower of cost or market rule : Ezekial Distribution Corporation has calculated its December 31, 2007 inventory on a FIFO basis at $250,000. The following data pertains to that inventory:

Need for an interdisciplinary approach : Both Allport and Murray emphasized the need for an interdisciplinary approach to the study of personality. What contributions to the understanding of personality can be made by disciplines such as literature, anthropology, history and mythology?

Tests used in organizational psychology : Describe one issue related to testing or one implication of tests and measurement in the setting you selected.

Explaining software maintenance service to customers : Service Consultants, a software service company, provides software maintenance service to customers of a software vendor. Which side do you think should have won? why?

Roles of staff industrial or organizational psychologists : Suppose that you have been hired as a staff member of a reality TV series. As an industrial/organizational psychologist, what could you do to help the selection process for contestants?

User Account

All Pages