Each unit of Blue Corporation’s inventory' has a net realizable value of $2,850, a nomial profit margin of $1,000, and a current replacement cost of $1,900. Determine the amount per unit that should be used as the market value to apply' the lower of cost or market rule to determine Blue’s ending inventory'.
Answer to relevant QuestionsPaul Corporation reports the following inventory information: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry' to record the reductions to market. On September 28, 2016, a fire destroyed the entire merchandise inventory of Carroll corporation. The following information is available: Sales, January 1-September 28, 2016 $560,000 Inventory, January ...Distinguish between an interest- bearing note and a non-interest-bearing note. How are the proceeds computed for a non- interest- bearing note? How do the matching principle and conservatism enter into the accounting for contingencies? McFriend Inc. records its liabilities for employees' vacations semiannually. As of January' 1, McFriend has 50 employees who are paid an average of $ 176 per day. The company allows 15 paid vacation days per year. Prepare ...
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