User Account

All Pages

Determining inventory at lower of cost or market

Assignment Help Accounting Basics
Reference no: EM13843613

On the basis of the following data, determine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in Exhibit 9.

Commodity         Inventory Quantity          Unit Cost Price           Unit Market Price

Buffal                       35                                $115                            $120

Dakota                     67                                90                                 75

Frontier                    8                                  300                               280

Midwest                    83                                 40                                30

Rainbow                   100                                90                                94

 EXHIBIT 9     Determining Inventory at Lower of Cost or Market

   In Exhibit 9, Items A, B, C, and D could be viewed as a class of inventory items. If the lower-of-cost-or-market method is applied to the class, the inventory would be valued at $15,472, which is a market decline of $48 ($15,520 -$15,472). Likewise, if Items A, B, C, and D make up the total inventory, the lower-of-cost-or-market method as applied to the total inventory would be the same amount, $15,472.

 (Warren 233-234)

Warren, Carl S. Survey of Accounting, 6th Edition. Cengage Learning, 02/2012. VitalBook file.

Reference no: EM13843613

Questions Cloud

Create blackjack program in java : Create Blackjack program in Java following the instructions below must be in NetBEans
Discuss which method fifo or lifo would be preferred : Discuss which method (FIFO or LIFO) would be preferred for income tax purpose
Principles of the free market and competition : Give an example in the marketplace that describes the principles of the free market and competition.
How many cubic centimeters of an ore containing : How many cubic centimeters of an ore containing only 0.22% gold (by mass) must be processed to obtain $100 worth of gold?
Determining inventory at lower of cost or market : Determining Inventory at Lower of Cost or Market
Summarise the governance problems and suggest solutions : Summarise the Governance problems and suggest solutions. Using Borne and Walker's article as a guide (see embedded object below), identify two stakeholders.
Swot analysis of a large technology company : Look at your organization (or one similar to it) and perform a SWOT analysis. For any reason you cannot use your organization, do a SWOT analysis of a large technology company such as Google, Microsoft, Oracle, Cisco and Apple. C
Does imprecision pose a problem : Does this imprecision pose a problem for anyone wanting to achieve Aristotle's notion of living a virtuous and happy life?
Implement the evaluator for the language : Implement the evaluator for the language L discussed in class. You should review the notes from that class. There is also a complete description of the language in this file.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Draft a memo explaining the major differences between the

dave is the president of avon consulting inc. avon began business on january 1 2012. the companys controller is out of

  What would be the change in the dollar amount of inventory

fleet inc. manufactured 700 units of product a a new product in 2001. product as variable and fixed manufacturing costs

  Assuming that a company has 365 million in annual sales

answer the following questions related to investments in inventory and accounts receivable1.how is inventory turnover

  Explain the impact on the calculation of tax liability

explain the impact that the adjusted basis has on the calculation of tax liability, and propose at least two tax-planning strategies for reducing, eliminating, or deferring the payment of capital gains taxes.

  Financial ratios of the most interest loan officer

Bob meets next month with a banker to secure a 60 day line of credit. He asks Mark which financial ratios will be of the most interest to the loan officer. How should Mark respond, any why?

  Superior analyzing the performance of sac

Write a memo to your superior analyzing the performance of SAC for 2005 and 2006. This analysis should be based on the information found in the consolidated financial statements.

  E-commerce creates its own risks and therefore special

e-commerce creates its own risks and therefore special internal controls. 1 identify and explain one pitfall and one

  Easecom company is a manufacturer of videoconferencing

budgeted income statement. easecom company is a manufacturer of videoconferencing products. regular units are

  Both are paid time and a half for any hours worked over

both are paid time and a half for any hours worked over eighthours each workday and work on saturdays and are paid

  Cadavieco detailings cost formula for its materials and

cadavieco detailings cost formula for its materials and supplies is 2060 per month plus 12 per vehicle. for the month

  Bender corporation produced 100 units of product aa the

1. bender corporation produced 100 units of product aa. the total standard and actual costs for materials and direct

  Determining annual cash flows for the investment

The Keego Company is planning a $200,000 equipment investment which has an estimated five-year life with no estimated salvage value. The company has projected the following annual cash flows for the investment.

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