Question
Please show how you get to the answer and explain it! Given the following information for Gator Company who uses the LIFO method: Net NRV
Please show how you get to the answer and explain it!
Given the following information for Gator Company who uses the LIFO method:
| Net | NRV Minus | ||||
| Realizable | Replacement | Normal | |||
| Item | Quantity | Cost | Value | Cost | Profit |
| 1 | 1 | $17.70 | $24.60 | $18.00 | $17.10 |
| 2 | 1 | 10.80 | 8.28 | 9.30 | 5.58 |
| 3 | 1 | 72.00 | 64.80 | 67.20 | 57.60 |
| 4 | 1 | 4.80 | 3.12 | 2.88 | 2.64 |
| 5 | 1 | 12.00 | 12.30 | 12.60 | 11.10 |
| 6 | 1 | 48.00 | 45.60 | 38.40 | 40.80 |
Required:
| a. | Determine the lower of cost or market value for each inventory item for Gator Company. |
| b. | Determine the lower of cost or market value for Gator Company's inventory if the lower of cost or market rule is applied to the total inventory. |
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