Questions 7-9 are based on the per unit information piese information concerns i

Question

Questions 7-9 are based on the per unit information piese information concerns items in Winston's inventory Cameras Lenses Tripods Historical Cost Selling price Cost to distribute Current replacement cost Normal profit margin $210.00 217.00 9.00 203.00 32.00 $53.00 73.75 2.50 51.00 21.25 $106.00 145.00 8.00 105.00 29.00 7) The limits to the market value (i.e, the "ceiling" and the "floor) that should be used in the lower of cost or market comparison for cameras are A) $217 and $198 B) $217 and $185 C) $198 and $166 D) $185 and $166 8) The amount that should be used as the lower of cost or market determination of lenses (i.e., the final amount used for inventory valuation purposes) is A) $105 B) $106 C) $108 D) $137 9) The amount that should be used as the lower of cost or market determination of tripods (i.e., the final amount used for inventory valuation purposes) is A) $50.00 3) $51.00 $53.00 ) $71.25

Explanation / Answer

Answer 7 -C. $198 and $166 The limits to the market value are for cameras are: Ceiling: NRV = Ceiling Price - Cost to Distribute Ceiling: NRV = $217 - $19 = $198 Floor: NRV - Normal Profit = $198 - $32 Floor: NRV - Normal Profit = $166 Answer 8 -b. $106 Hisrorical Cost - Lens = $106 Answer 9-B. $51 Ceiling NRV = Selling Cost - cost to Distribute Ceiling NRV = $73.75 - $2.50 = $71.25 Cost = Replacement Cost = $51 LCM is lower of designated market or Cost = $51

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.