b. $1,157,000. c. $1,164,200. d. $1,200,000. Oslo Corporation has two products in its ending inventory, each accounted for at the lower cost or market A profit margin of 30% on selling price is considered normal for each 10. product. Specific data with respect to each product follows Product #2 $ 18 Product#1 $10 Historical cost 14 Replacement cost Estimated cost to dispose Estimated selling price In pricing its ending inventory using the lower-of-cost-or-market, what unit values, rounded to the nearest dollar, should Oslo use for products #1 and #2, respectively? a. $10 and $16 b. $13 and $16 c. $13 and $15 d. $11 and $14 Given the acquisition cost of product Z is $27, the net realizable value for product Z is $24, the normal profit for product Z is $2, and the market value (replacement cost) for product Z is $25, what is the proper per unit inventory value for product Z applying LCM? a. $27 b. $25 . $22. d. $24 11. 12. Turner Corporation acquired two inventory items at a lump-sum cost of $120,000. The acquisition included 3,000 units of product LF, and 7,000 units of product 1B. LF normally sells for $30 per unit, and 1B for $10 per unit. If Tuner sells 1,000 units of LF, what amount of gross profit should it recognize? a. $2,500 b. $7,500. c. $20,000 d. $24,500. 13. During the prior fiscal year, Jeremiah Corp. signed a long-term noncancellable purchase commitment with its primary supplier to purchase $2.0 million of raw materials. Jeremiah paid the $2.0 million to acquire the raw materials when the raw materials were only worth $1.6 million. Assume that the purchase commitment was properly recorded. What is the ournal entry to record the purchase? a. Debit Inventory for $1,600,000, and credit Cash for $1,600,000. b. Debit Inventory for $1,600,000, debit Unrealized Holding Gain or Loss for $400,000 and credit Cash for $2,000,000. c. Debit Inventory for $1,600,000, debit Estimated Liability on Purchase Commitments for $400,000 and credit Cash for $2,000,000 d. Debit Inventory for $2,000,000, and credit Cash for $2,000,000