The following information is taken from Max Imus' inventory records: Women's Apparel Men's Apparel Accessories Selling price $95,000 $60,000 $30,000 Selling costs 7, 500 5,500 3,000 Cost 75,000 50,000 24,000 Replacement cost 80, 000 45,000 10,000 Normal profit margin is 15% of the selling price. a) What is the correct inventory value for each product using the lower of cost or market. b) Journalize the required adjusting entry.

The following information is taken from Max Imus' inventory records: Women's Apparel Men's Apparel Accessories Selling price $95,000 $60,000 $30,000 Selling costs 7, 500 5,500 3,000 Cost 75,000 50,000 24,000 Replacement cost 80, 000 45,000 10,000 Normal profit margin is 15% of the selling price. a) What is the correct inventory value for each product using the lower of cost or market. b) Journalize the required adjusting entry.

Name: s The following information is taken from Max Imus' inventory records:
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Description: s The following information is taken from Max Imus' inventory records: Women's Apparel Men's ApparelAccessories Selling price $95,000 $60,000 $30,000 Selling costs 7, 500 5,500 3,000 Cost75,000 50,000 24,000 Replacement cost 80,000 45,000 10,000 Norm

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 4CE: Kulsrud Company would like to estimate the current inventory level. Using the gross profit method...

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