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.
when creating a trial balance, which account balances carry over from previous months
The Bayside Company uses the LIFO cost flow method to value inventory. In the current year, profit at Bayside is running unusually high. The corporate tax rate is also high this ye
Q. Show Periodicity concept? As per to the periodicity (time periods) concept or assumption an entity's life can be meaningfully subdivided into time periods (such as months or
Explain the Terms of Payment Revolving charge plans are set up so that you can pay a percentage plus a finance charge on a monthly basis. Credit terms - allow purchaser a
How can price inflation effect a university negatively in the future? Like, what are a few things in the university that will be impacted?
Analysing and Recording Process Question A friend knows that you are studying the Business Accounting 1 course, so he approaches you and enquires about the steps of the ana
I need help understanding my Accounting 205 class. Would some one please help me understand what I am having such a hard time comprehending.
Q. What is Merchandise inventory? Merchandise inventory is the cost of goods on hand in addition to available for sale at any given time. To determine the cost of goods sold in
Q. Describe about Assets? Assets are things of worth owned by the business. They are as well called the resources of the business. Illustration includes machines, cash and buil
Inflation Accounting: It is related along with the adjustment in the value of assets that is current and fixed and of income in the light of changes in the price level. In a
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