Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Lower of Cost or Market Inventory
Bob's Jewelry Company's inventory records indicates the following:
Normal
Quantity
Unit Cost
Replacement Cost
Profit
Item
On Hand
When Acquired
at Year-End
Selling Price
Margin
Watches
100
$258
$269
$230
50
Rings
250
903
1,025
950
Bracelets
60
1,588
1,680
1,783
80
Compute the total ending inventory value using the Lower of Cost or Market rule
applied to each item.
Answer
Bob's Jewelry Company
Quantity on hand (a)
Cost per unit,$
Replacement cost per item, $
Lower of Cost / Replacement cost per unit, $ (b)
Total value (a*b), $
258.00
269.00
25,800
903.00
1,025.00
225,750
1,588.00
1,680.00
95,280
346,830
Here market value is the replacement cost of inventories at year end. Accountants define replacement cost as market value.
Q. Example of Unearned service fees? Unearned service fees On December 7 Micro Train Company received USD 4500 from a customer in payment for future training services. The firm
a simple discount note for $6,600 at a ordinary bank discount rate of 8.61% for 60 days. What is the effective interest rate? Round to the nearest tenth of a percent
Journal Entries are recorded on a double entry system like debit and credit concept. In order to record a journal entry the following steps require to be followed. ? Enter the J
Fund flow deals with transaction within financial year (One year) while Cash flow Statement record only the cash transaction.
show deeply
Over the past two decades, the People's Republic of China has invested billions of RMB in domestic and international air travel capability. Today, almost every major city in China
Encik Farid, a sole trader, started his business on 1 May 2010 under the name Farid Enterprise. The following are his business transactions for the month of May a. Encik Farid
Lower of Cost or Market Inventory Bob's Jewelry Company's inventory records indicates the fol
A firm has $200,000 in total assets and $120,000 in owner's equity. What are the total liabilities? A. $80,000 B. $200,000 C. $320,000 D. Cannot be determined from the info
Q. Explain about Purchase discounts? Purchase discounts frequently companies purchase merchandise under credit terms that permit them to deduct a stated cash discount if they p
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd