Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

this is what i tried and it was wrong please tell me what I need to do instead Product Original cost replacement cost NRV NRV

image text in transcribed

this is what i tried and it was wrong please tell me what I need to do instead

Product Original cost replacement cost NRV NRV less normal profit profit median(market)

lower of cost or market(min)

A $ $26.00 $35.50 $27.30 $8.20 $27.30 $26.00
B $ $44.00 $41.00 $31.00 $10.00 $41.00 $31.00
C $ $123.00 $178.00 $118.00 $60.00 $123.00 $118.00
D $ $15.60 $23.00 $17.40 $5.60 $17.40 $15.60
The December 31, 2020 inventory of Wildhorse Company consisted of four products, for which certain information is provided below. Product A B Original Cost $28.00 $46.00 $128.00 $17.00 Replacement Cost $26.00 $44.00 $123.00 $15.60 Estimated Disposal Cost $5.50 $9.00 $22.00 $5.00 Expected Selling Price $41.00 $50.00 $200.00 $28.00 Normal Profit on Sales 20.00% 20.00% 30.00% 20.00% D Using the lower-of-cost-or-market approach applied on an individual-item basis, compute the inventory valuation that should be reported for each product on December 31, 2020. (Round answers to 2 decimal places, eg 5275.) Product A $ B $ $ D $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Warehouse Performance

Authors: Kenneth B. Ackerman

1st Edition

0963177680, 978-0963177681

More Books

Students also viewed these Accounting questions