sharad Maynor Inc has two products in its ending inventory, each accounted for at the lower of cost ormarket. A profit margin of 30% on selling price is considered normal for each product. Specificdata with respect to each product follows:ProductAProductBProductсProductDHistorical CostReplacement Cost$$ 20.0022.50 $ 27.00 $$ 35.00 $ 40.00 $ 70.0025.00 $ 54.00Estimated Cost To DisposeEstimated Selling PriceS5.00 $ 13.00 $ 10.00 $ 26.00$ 40.00 $ 65.00 $ 80.00 $ 130.00In pricing its ending inventory using the lower-of-cost-or-market, what unit values shouldMaynor use for products A, B, C, &D respectively?Designated FinalHistorical ReplacementProductCeiling FloorCostCostMarket InventoryValueValueProduct A2022.5Product B3527Product C4025Product D7054

Inventory valuation :According to prescribed rules inventory should be valued at the lesser of cost…

Maynor Inc has two products in its ending inventory, each accounted for at the lower of cost or market. A profit margin of 30% on selling price is considered normal for each product. Specific data with respect to each product follows: Product A Product B Product C Product D Historical Cost Replacement Cost $ 22.50 S $ $ 20.00 $ 35.00 $ 40.00 $ 70.00 27.00 $ 25.00 $ 54.00 Estimated Cost To Dispose 5.00 $ 13.00 $ 10.00 $ 26.00 Estimated Selling Price $ 40.00 $ 65.00 $ 80.00 $ 130.00 In pricing its ending inventory using the lower-of-cost-or-market, what unit values should Maynor use for products A, B, C, &D respectively?

Maynor Inc has two products in its ending inventory, each accounted for at the lower of cost or market. A profit margin of 30% on selling price is considered normal for each product. Specific data with respect to each product follows: Product A Product B Product C Product D Historical Cost Replacement Cost $ 22.50 S $ $ 20.00 $ 35.00 $ 40.00 $ 70.00 27.00 $ 25.00 $ 54.00 Estimated Cost To Dispose 5.00 $ 13.00 $ 10.00 $ 26.00 Estimated Selling Price $ 40.00 $ 65.00 $ 80.00 $ 130.00 In pricing its ending inventory using the lower-of-cost-or-market, what unit values should Maynor use for products A, B, C, &D respectively?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 2RE: Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net...

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