The Bar Corporation applies the lower of cost or netrealizable value (NRV) inventory Data regarding the items in work-in-process inventory are shown below: Shorts Pants Historical cost P56,640 P90,000 Selling price Estimated cost to complete Replacement cost 108,800 110,000 14,400 20,400 50,400 95,400 Normal profit margin as percentage of selling price 25% 10%

The Bar Corporation applies the lower of cost or netrealizable value (NRV) inventory Data regarding the items in work-in-process inventory are shown below: Shorts Pants Historical cost P56,640 P90,000 Selling price Estimated cost to complete Replacement cost 108,800 110,000 14,400 20,400 50,400 95,400 Normal profit margin as percentage of selling price 25% 10%

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 2RE: Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net...

See similar textbooks

Similar questions

Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for weighted average (AVG).
Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for last-in, first-out (LIFO).
Use the first-in, first-out method (FIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for B75 Company, considering the following transactions.
Use the first-in, first-out (FIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
Inventory Costing: Average Cost Refer to the information for Filimonov Inc. and assume that the company uses a perpetual inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the average cost method. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.)
Blue Corporation uses the FIFO cost flow assumption. Presented below is information related to Blues inventory: Determine (a) the net realizable value for each item and (b the inventory value of each item using the lower of cost or net realizable value rule.
Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net realizable value of 300, a normal profit margin of 35, and a current replacement cost of 250. Determine the amount per unit that should be used as the market value to apply the lower of cost or market rule to determine Blacks ending inventory.
Lower-of-Cost-or-Market InventoryOn 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. ProductInventoryQuantityUnitCost PriceUnitMarket Value per Unit(Net Realizable Value)Model A300$140$125Model B50090112Model C1506059Model D800120115Model E400140145 Inventory at the Lower of Cost or MarketProductTotal CostTotal MarketLower of Total Cost or Total MarketA$$$B C D E Total$$$
When using a perpetual inventory system and the weighted-average inventory costing method, when does the business compute a new weighted-average cost per unit?
The work-in-process inventory shall be reported at what amount? The Bar Corporation applies the lower of cost or net realizable value (NRV) inventory Data regarding the items in work-in-process inventory are shown below: 華華 Shorts Pants Historical cost P56,640 P90,000 Selling price Estimated cost to complete Replacement cost Normal profit margin as percentage of selling price 108,800 110,000 14,400 20,400 50,400 95,400 25% 10%