Konan, Inc. needs to determine its inventory value. The following information pertains to the individual products in ending inventory: Product Cost Replacement Cost Selling Price Cost of Completion Normal Profit L-19 $40 $38 $50 $2 $11 M-23 52 40 60 10 8 N-05 20 24 30 2 6 Assuming Konan uses the FIFO method for costing its inventory, the net realizable value for product L-19 is: Multiple Choice $37. $38. $48. $50 Assuming Konan uses the LIFO method for costing its inventory, the maximum limit for market value of product L-19 is: Multiple Choice $37. $38. $48. $50.
Konan, Inc. needs to determine its inventory value. The following information pertains to the individual products in ending inventory: Product Cost Replacement Cost Selling Price Cost of Completion Normal Profit L-19 $40 $38 $50 $2 $11 M-23 52 40 60 10 8 N-05 20 24 30 2 6 Assuming Konan uses the FIFO method for costing its inventory, the net realizable value for product L-19 is: Multiple Choice $37. $38. $48. $50 Assuming Konan uses the LIFO method for costing its inventory, the maximum limit for market value of product L-19 is: Multiple Choice $37. $38. $48. $50.
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter20: Accounting For Inventory
Section20.2: Determining The Cost Of Merchandise Inventory
Problem 1OYO
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Konan, Inc. needs to determine its inventory value. The following information pertains to the individual products in ending inventory:
| Product | Cost | Replacement Cost | Selling Price | Cost of Completion | Normal Profit |
| L-19 | $40 | $38 | $50 | $2 | $11 |
| M-23 | 52 | 40 | 60 | 10 | 8 |
| N-05 | 20 | 24 | 30 | 2 | 6 |
Assuming Konan uses the FIFO method for costing its inventory, the net realizable value for product L-19 is:
Multiple Choice
-
$37.
-
$38.
-
$48.
-
$50
Assuming Konan uses the LIFO method for costing its inventory, the maximum limit for market value of product L-19 is:
Multiple Choice
-
$37.
-
$38.
-
$48.
-
$50.
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