Question
Inventory Write-Down Stiles Corporation uses the FIFO cost flow assumption and is in the process of applying the LCNRV rule for each of two products
Inventory Write-Down
Stiles Corporation uses the FIFO cost flow assumption and is in the process of applying the LCNRV rule for each of two products in its ending inventory. A profit margin of 30% on the selling price is considered normal for each product. Specific data for each product are as follows:
| Product A | Product B | |
|---|---|---|
| Historical cost | $81 | $96 |
| Replacement cost | 70 | 99 |
| Estimated cost of disposal | 32 | 29 |
| Estimated selling price | 150 | 120 |
Required:
What is the correct inventory value for each product?
| Product A | $fill in the blank 1 per unit |
| Product B | $fill in the blank 2 per unit |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
