Question
SLR Corporation has 700 units of each of its two products in its year-end inventory. Per unit data for each of the products are as
SLR Corporation has 700 units of each of its two products in its year-end inventory. Per unit data for each of the products are as follows:
Product 1 Product 2 Cost $ 70 $ 54 Replacement cost 68 46 Selling price 90 56 Selling costs 26 9 Normal profit margin 30 13
Determine the balance sheet carrying value of SLRs inventory assuming that the lower of cost or market (LCM) rule is applied to individual products. What is the before-tax income effect of the LCM adjustment?
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Management Accounting For Business Decisions
Authors: Colin Drury
2nd Edition
1861527705, 978-1861527707
