Question
Presented below is information related to Swifty Inc.s inventory, assuming Swifty uses lower-of-LIFO cost-or-market. (per unit) Skis Boots Parkas Historical cost $201.40 $112.36 $56.18 Selling
Presented below is information related to Swifty Inc.s inventory, assuming Swifty uses lower-of-LIFO cost-or-market.
(per unit) | Skis | Boots | Parkas | |||
---|---|---|---|---|---|---|
Historical cost | $201.40 | $112.36 | $56.18 | |||
Selling price | 224.72 | 153.70 | 78.18 | |||
Cost to distribute | 20.14 | 8.48 | 2.65 | |||
Current replacement cost | 215.18 | 111.30 | 54.06 | |||
Normal profit margin | 33.92 | 30.74 | 22.53 |
Determine the following: (a) The two limits to market value (i.e., the ceiling and the floor) that should be used in the lower-of-cost-or-market computation for skis. (Round answers to 2 decimal places, e.g. 52.75.)
Ceiling Limit | $enter a dollar amount | |
---|---|---|
Floor Limit | $enter a dollar amount |
(b) The amount that should be used in the lower-of-cost-or-market comparison of boots. (Round answers to 2 decimal places, e.g. 52.75.)
(c) The amount that should be used to value parkas on the basis of the lower-of-cost-or-market. (Round answers to 2 decimal places, e.g. 52.75.)
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