SLR Corporation has 900 units of each of its two products in its year-end inventory. Per unit data for each of the products are asfollows:CostReplacement costSelling priceSelling costsNormal profitProduct 1$ 6765872327Determine the carrying value of SLR's 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?Required 1 Required 2Complete this question by entering your answers in the tabs below.Product CostProduct 2$ 51435312Determine the carrying value of SLR's inventory assuming that the lower of cost or market (LCM) rule is applied to individualproducts.Market610Per UnitInventory ValueCostUnit900900$Inventory value< Required 1Cost0Lower of Costor Market$Required 20

Name: SLR Corporation has 900 units of each of its two products in its year
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: SLR Corporation has 900 units of each of its two products in its year-end inventory. Per unit data for each of the products are asfollows:CostReplacement costSelling priceSelling costsNormal profitProduct 1$ 6765872327Determine the carrying value of

The LCM (Lower of Cost or Market) is the method that evaluates the ending value of inventory by…

Business

Accounting

SLR Corporation has 900 units of each of its two products in its year-end inventory. Per unit data for each of the products are as follows: Cost Replacement cost. Selling price Selling costs Normal profit Product 1 $ 67 65 87 23 27 Determine the carrying value of SLR's 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? Complete this question by entering your answers in the tabs below. Required 1. Required 2 Product Cost Product 2 $ 51 43 53 6 10 Determine the carrying value of SLR's inventory assuming that the lower of cost or market (LCM) rule is applied to individual products. 1 2 Market Per Unit Inventory Value Unit Cost 900 900 $ Inventory value < Required 1 Cost 0 Lower of Cost or Market $ Required 2 >

SLR Corporation has 900 units of each of its two products in its year-end inventory. Per unit data for each of the products are as follows: Cost Replacement cost. Selling price Selling costs Normal profit Product 1 $ 67 65 87 23 27 Determine the carrying value of SLR's 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? Complete this question by entering your answers in the tabs below. Required 1. Required 2 Product Cost Product 2 $ 51 43 53 6 10 Determine the carrying value of SLR's inventory assuming that the lower of cost or market (LCM) rule is applied to individual products. 1 2 Market Per Unit Inventory Value Unit Cost 900 900 $ Inventory value < Required 1 Cost 0 Lower of Cost or Market $ Required 2 >

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...

See similar textbooks

Similar questions

Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net realizable value of 300, a normal profit margin of 35, and a current replacement cost of 250. Determine the amount per unit that should be used as the market value to apply the lower of cost or market rule to determine Blacks ending inventory.
SLR Corporation has 900 units of each of its two products in its year-end inventory. Per unit data for each of the products are as follows: Cost Replacement cost Selling price Selling costs Normal profit Product 1 Product 2 $52 $68 66 44 88 54 24 7 28 11 Determine the carrying value of SLR's 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?
SLR Corporation has 1,200 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 $ 54 $ 36 Selling price 80 38 Costs to sell 4 5 Determine the carrying value of SLR’s inventory assuming that the lower of cost or net realizable value (LCNRV) rule is applied to individual products. What is the before-tax income effect of the LCNRV adjustment? What is the before-tax income effect of the LCNRV adjustment?
SLR Corporation has 500 units of each of its two products in its yeor-end inventory. Per unit data for each of the products are os follows: Product 1 Product 2 Cost $53 $37 Replacement cost Selling price Selling costs Normal profit 51 29 73 39 13 11 Determine the carrying value of SLR's 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the carrying value of SLR's inventory assuming that the lower of cost or market (LCM) rule is applied to individual products. Per Unit Inventory Value Lower of Coat or Market Product Coat Market Unit Cost 53s 73 1 51 51 500 26,500 25,500 29 29 500 36,500 14,500 Cost 63,000 Inventory value 40,000 Required 1 Required 2 >
SLR Corporation has 1,000 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 2Cost $ 50 $ 34 Selling price $70 36 Costs to sell $6 4 Determine the carrying value of SLR’s inventory assuming that the lower of cost or net realizable value (LCNRV) rule is applied to individual products. What is the before-tax income effect of the LCNRV adjustment? LCNRV = $82,000 (adjustment of -$2000). Why does net income decrease when this adjustment is made?
A company has four types of products in its inventory as shown below: Product Quantity Cost Net Realizable Value A 15 $ 7 $ 10 B 10 18 12 C 20 8 6 D 15 11 15 When accounting for the lower of cost or net realizable value by individual items, the year-end adjustment to write down inventory would be:
SLR Corporation has 3,000 units of each of its two products in its year-end inventory. Per unit data for each of the products are as follows: Cost Selling price Costs to sell Product 1 $ 90 170 7 Determine the carrying value of SLR's inventory assuming that the lower of cost or net realizable value (LCNRV) rule is applied to individual products. What is the before-tax income effect of the LCNRV adjustment? Complete this question by entering your answers in the tabs below. Product 2 $ 54 56 3 Required 1 Required 2 Determine the carrying value of SLR's inventory assuming that the lower of cost or net realizable value (LCNRV) rule is applied to individual products. Product Cost NRV 1 2 Cost Selling price Costs to sell Per Unit Inventory Value Product 1 $ 90 170 7 Cost Unit $ Inventory value 0 Required 2 >
SLR Corporation has 1,000 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 $50 $34 Replacement cost $48 $26 Selling price $70 $36 Selling costs $6 $4 Normal profit $10 $8 Determine the carrying value of SLR’s 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? Product Cost Market Per Unit Inventory Value Unit Cost Lower of Cost or Market 1 1,000 2 1,000 26,000 Cost Inventory value What is the before-tax income effect of the LCM adjustment? (higher by/lower by/no effect) _______ (amount)
SLR Corporation has 1,000 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 2Cost $50 $34Selling price 70 36Costs to sell 6 4 Determine the carrying value of SLR’s inventory assuming that the lower of cost or net realizable value (LCNRV) rule is applied to individual products. What is the before-tax income effect of the LCNRV adjustment?
Splish Brothers, Inc. values its inventory at the lower-of-LIFO-cost-or-market. The following information is available from the company’s inventory records as of December 31, 2020. Item Quantity UnitCost ReplacementCost/Unit Estimated SellingPrice/Unit Completion & DisposalCost/Unit Normal ProfitMargin/Unit X490 8,976 $11.00 $10.52 $12.32 $2.64 $2.99 X512 4,356 6.16 6.60 7.83 0.22 1.58 X682 15,840 16.72 16.37 27.76 2.86 7.92 Z195 11,000 12.54 12.32 17.42 1.23 5.06 Z846 7,568 10.56 11.22 12.28 1.85 0.97 (a) Correct answer icon Your answer is correct. Calculate the lower-of-cost-or-market using the individual-item approach. (Round answers to 2 decimal places, e.g. 52.75.) (b) Partially correct answer icon Your answer is partially correct. Show the journal entries Splish Brothers, Inc. will…
A company has four types of products in its inventory. The company applies the rules under lower of cost and net realizable value to its inventory at the end of each year as shown below: Product A B CA с D Quantity 15 10 20 15 Cost $7 15 8 11 Net Realizable Value $8 14 6 10 The year-end adjustment based upon the information above would include a:
The management of Tudor Living asks for your help in determining the comparative effects of the FIFO and average-cost inventory cost flow methods. For 2020, the accounting records provide the data shown below. Units purchased consisted of 40,000 units at £4.00 on May 10; 60,000 units at £4.20 on August 15; and 20,000 units at £4.45 on November 20. Income taxes are 28%. Instructions a.Prepare comparative condensed income statements for 2020 under FIFO and average cost. (Show computations of ending inventory.) b.Answer the following questions for management: 1.Which inventory cost flow method produces the more meaningful inventory amount for the statement of financial position? Why? 2.Which inventory cost flow method is more likely to approximate the actual physical flow of the goods? Why? 3.How much more cash will be available for management under average-cost thanunder FIFO? Why?