User Account

All Pages

Determine the two limits to market value

Assignment Help Accounting Basics
Reference no: EM131603206

Problem - Presented below is information related to Ayayai Inc.'s inventory, assuming Ayayai uses lower-of-LIFO cost-or-market.

(per unit)

Skis

Boots

Parkas

Historical cost

$216.60

$120.84

$60.42

Selling price

241.68

165.30

84.08

Cost to distribute

21.66

9.12

2.85

Current replacement cost

231.42

119.70

58.14

Normal profit margin

36.48

33.06

24.23

Determine the following:

(a) The two limits to market value (i.e., the ceiling and the floor) that should be used in the lower-of-cost-or-market computation for skis.

(b) The cost amount that should be used in the lower-of-cost-or-market comparison of boots.

(c) The market amount that should be used to value parkas on the basis of the lower-of-cost-or-market.

Reference no: EM131603206

Questions Cloud

Calculate the required rate of return : Calculate the required rate of return for Climax Inc., assuming that (1) investors expect a 4.0% rate of inflation in the future,
Calculate the annual depreciation charge : Calculate the annual depreciation charge for each of the six years of the truck's life using the following methods the straight-line method
Explain the ethical standards of auditing : Explain the ethical standards of auditing in the U.S. and why it is so important to have strong global standards also
Define elements of computer security : Read at least three articles that are no more than 12 months old. Apply the content from the articles to the elements of computer security.
Determine the two limits to market value : Determine the two limits to market value (i.e., the ceiling and the floor) that should be used in the lower-of-cost-or-market computation for skis
What is your total dollar return from this investment : You’ve just opened a margin account with $18,000 at your local brokerage firm. What is your total dollar return from this investment?
What is your account equity at this stock price : what share price will you receive a margin call? What is your account equity at this stock price?
What amount should be reported as a current liability : By December 31, 2017, 16 of the 40 home games had been played. What amount should be reported as a current liability at December 31, 2017
Compute depreciation under the straight-line : Compute depreciation under the straight-line, units-of-output, working hours, sum-of-the-years'-digits, and double-declining-balance methods

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd