Question
Question 10 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 $285.00 $159.00
Question 10
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 $285.00 $159.00 $79.50
Selling price 318.00 217.50 110.63
Cost to distribute 28.50 12.00 3.75
Current replacement cost 304.50 157.50 76.50
Normal profit margin 48.00 43.50 31.88
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.
Ceiling Limit $ ?
Floor Limit $ ?
(b)The cost amount that should be used in the lower-of-cost-or-market comparison of boots.
The cost amount $ ?
(c)The market amount that should be used to value parkas on the basis of the lower-of-cost-or-market.
The market amount $ ?
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