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Determine the two limits to market value

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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.

Reference no: EM132474475

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