Reference no: EM132474475
Presented below is information related to Metlock Inc.'s inventory, assuming Metlock uses lower-of-LIFO cost-or-market.
(per unit) Skis Boots Parkas
Historical cost $239.40 $133.56 $66.78
Selling price 267.12 182.70 92.93
Cost to distribute 23.94 10.08 3.15
Current replacement cost 255.78 132.30 64.26
Normal profit margin 40.32 36.54 26.78
Determine the following:
Question (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.
Question (b) The cost amount that should be used in the lower-of-cost-or-market comparison of boots.
Question (c) The market amount that should be used to value parkas on the basis of the lower-of-cost-or-market.
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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.
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