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3) The following information is taken from Sweet Corporation's inventory records Women's Apparel Men's Apparel Children's Apparel Selling price $ 173,000 $ 144,000 $ 126,000
| 3) The following information is taken from Sweet Corporation's inventory records | ||||||
| Women's Apparel | Men's Apparel | Children's Apparel | ||||
| Selling price | $ 173,000 | $ 144,000 | $ 126,000 | |||
| Selling costs | 12,000 | 14,000 | 10,000 | |||
| Cost | 112,000 | 136,000 | 94,000 | |||
| Replacement cost | 121,000 | 132,000 | 113,000 | |||
| Normal profit margin is 21% of the selling price. | ||||||
| a) What is the correct inventory value for each product using the lower of cost or market. | ||||||
| b) Journalize the required adjusting entry. | ||||||
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
