The December 31, 2018 inventory of Dwyer Company consisted of four products, for which certain information...

 

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The December 31, 2018 inventory of Dwyer Company consisted of four products, for which certain information is provided below. Normal Profit Replacement Cost $22.00 $40.00 on Sales Product Original Cost A B C D $25.00 $42.00 $120.00 $18.00 $115.00 $15.80 Estimated Disposal Cost $6.50 $12.00 $25.00 $3.00 Expected Selling Price $40.00 $48.00 $190.00 $26.00 20% 25% 30% 10% Instructions Using the lower-of-cost-or-market approach applied on an individual-item basis, compute the inventory valuation that should be reported for each product on December 31, 2018. The December 31, 2018 inventory of Dwyer Company consisted of four products, for which certain information is provided below. Normal Profit Replacement Cost $22.00 $40.00 on Sales Product Original Cost A B C D $25.00 $42.00 $120.00 $18.00 $115.00 $15.80 Estimated Disposal Cost $6.50 $12.00 $25.00 $3.00 Expected Selling Price $40.00 $48.00 $190.00 $26.00 20% 25% 30% 10% Instructions Using the lower-of-cost-or-market approach applied on an individual-item basis, compute the inventory valuation that should be reported for each product on December 31, 2018.

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SOLUTION To compute the inventory valuation using the lowerofcostormarket approach applied on an individualitem basis we compare the original cost and ... View the full answer