Question
Cumming Inc. carries four items in inventory. Determine the proper carrying value of each inventory item using the lower-of-cost-or-market method. Item Cost Replacement Cost Estimated
Cumming Inc. carries four items in inventory.
Determine the proper carrying value of each inventory item using the lower-of-cost-or-market method.
| Item | Cost | Replacement Cost | Estimated Sales Price | Disposal Costs | Normal Profit |
| A | $11.00 | $10.00 | $16.00 | $1.80 | $4.00 |
| B | 12.00 | 12.00 | 20.00 | 1.60 | 2.50 |
| C | 5.00 | 4.00 | 9.50 | 1.90 | 1.00 |
| D | 14.00 | 15.00 | 15.00 | 2.40 | 3.50 |
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Financial Accounting
Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider
16th Edition
1337913103, 9781337913102
