View Policies

Current Attempt in Progress

Tamarisk Home Improvement Company installs replacement siding, windows, and louvered glass doors for single$-$family homes and condominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ended May $31,2025.$ Jim Alcide, controller for Tamarisk, has gathered the following data concerning inventory.

At May $31,2025,$ the balance in Tamarisk's Raw Materials Inventory account was $$477,360.$ Alcide summarized the relevant inventory cost and market data at May $31,2025,$ in the schedule below.

Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Tamarisk's May $31,2025,$ financial statements for inventory under the lower$-$of$-$cost$-$or$-$market rule as applied to each item in inventory. Devereaux expressed concern over departing from the historical cost principle. Consider the following expanded data at May $31,2025.$ Assume Tamarisk uses LIFO inventory costing.

$\backslash$table$[[,$Cost,$\backslash$table$[[$Replacement$],[$Cost$]],$Sales Price,$\backslash$table$[[$Net$],[$Realizable$],[$Value$]],\backslash$table$[[$Normal$],[$Profit$]]],[\backslash$table$[[$Aluminum siding$]],$$$81,900,$$$73,125,$$$74,880,$$$65,520,$$$5,967$