Presented below is information related to Larkspur Inc.'s inventory, assuming Larkspur uses lower-of-LIFO cost-or-market. (per unit)...

 

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Presented below is information related to Larkspur Inc.'s inventory, assuming Larkspur uses lower-of-LIFO cost-or-market. (per unit) Skis Boots Parkas Historical cost $224.20 $125.08 $62.54 Selling price 250.16 171.10 87.03 Cost to distribute 22.42 9.44 2.95 Current replacement cost 239.54 123.90 60.18 Normal profit margin 37.76 34.22 25.08 Determine the following: (a) The two limits to market value (i.e., the ceiling and the floor) that should be used in the lower-of-cost-or-market computation for skis. Ceiling Limit 24 Floor Limit $4 (b) The cost amount that should be used in the lower-of-cost-or-market comparison of boots. The cost amount %24 (c) The market amount that should be used to value parkas on the basis of the lower-of-cost-or-market. The market amount Presented below is information related to Larkspur Inc.'s inventory, assuming Larkspur uses lower-of-LIFO cost-or-market. (per unit) Skis Boots Parkas Historical cost $224.20 $125.08 $62.54 Selling price 250.16 171.10 87.03 Cost to distribute 22.42 9.44 2.95 Current replacement cost 239.54 123.90 60.18 Normal profit margin 37.76 34.22 25.08 Determine the following: (a) The two limits to market value (i.e., the ceiling and the floor) that should be used in the lower-of-cost-or-market computation for skis. Ceiling Limit 24 Floor Limit $4 (b) The cost amount that should be used in the lower-of-cost-or-market comparison of boots. The cost amount %24 (c) The market amount that should be used to value parkas on the basis of the lower-of-cost-or-market. The market amount

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a Skis Ceiling Selling price 25016 lesscost to distribute ... View the full answer