Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Loft Co. reviewed its LIFO inventory values for proper pricing at year-end. The following summarizes two inventory items examined for the lower of cost or

Loft Co. reviewed its LIFO inventory values for proper pricing at year-end. The following summarizes two inventory items examined for the lower of cost or market:

Inventory item #1

Original Cost $210000

Replacement Cost $150000

Net Realizable Value $240000

Net Realizable Value Less Profit Margin $208000

Inventory item #2

Original Cost $400000

Replacement Cost $370000

Net Realizable Value $410000

Net Realizable Value Less Profit Margin $405000

What amount should Loft include in inventory at year-end, if it uses the total of the inventory to apply the lower of cost or market?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Debra JeterJames Reeve, Jonathan Duchac, Horace Brock, Paul Chaney

4th Edition

0470506989, 978-0470506981

More Books

Students also viewed these Accounting questions

Question

How are primary and foreign keys different?

Answered: 1 week ago