Describe some business and economic conditions that might make the lower of cost or net realizable value more likely to be used.
Answer to relevant QuestionsUnder which of the inventory methods, periodic or perpetual, would a company be better equipped to detect inventory shrinkage? Why? Mackay Industries’ sales for the year ended December 31, 2014, were $1,287,000 and cost of goods sold amounted to $707,000. Beginning inventory was $58,000 and ending inventory was $77,000. Compute Mackay Industries' rate ...Assume that Bonsai Boards has the following FIFO perpetual inventory record for snowboards for the month of November: At November 30, the accountant for Bonsai Boards determines that the current replacement cost of the ...Assume that Midway Cycles bought and sold a line of mountain bikes during May as follows: Midway Cycles uses the perpetual inventory system. Requirements 1. Compute the cost of ending inventory under FIFO. 2. Compute the ...Calco’s sales for the year 2014 were $115,000 ($92/unit). On January 1, 2014, Calco’s beginning inventory showed 120 units, costing $4,800. During 2014, Calco purchased 1,420 units at $38 each. Calco’s income statement ...
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