Question
Sarahs nursery uses LIFO cost flow assumptions and has developed the following data for its products. The indivisual types of flowers are seperated to their
Sarahs nursery uses LIFO cost flow assumptions and has developed the following data for its products. The indivisual types of flowers are seperated to their catagories
Selling price | cost | Cost to replace | |
Small flowers | |||
rose | $1,800 | $1,000 | $800 |
tulip | 2,200 | 1,600 | 1,400 |
Selling price | cost | Cost to replace | |
large flowers | |||
daises | $2,500 | $1,750 | $1,800 |
orchids | 3,600 | 3,350 | 3,200 |
Selling price | cost | Cost to replace | |
medium flowers | |||
lilies | $1,800 | $1,400 | $1,300 |
gardinias | 2,300 | 1,800 | 1,700 |
The cost to sell are 10% of the selling price, and the normal profit margin on all flowers is 20% of the selling price
A: what is the reported inventory value assuming the lower of cost or market rule is applied to individual flower products.
B: what is the reported inventory value assuming the lower of cost or market rule is applied to categories of flowers
C: what is the reported inventory value assuming the lower of cost or market rule is applied to the total inventory
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