The December 31, 2018 inventory of the COYOTE Co. consisted of 3 products, for which the following information is provided.

                        Original            Replacement     Est. Disposal     Selling             Normal Profit

Product             Cost                Cost                  Cost                  Price               on Sales

   A                    $300                $280                $100                $500                30%

   B                   400                  350                   90                   600                 15

   C                  500                  600                  120                   700               10

  

Instructions: Using the lower of cost or market approach on an individual item basis,

1. Compute the inventory valuation that should be reported for each product on 12/ 31/2018.
2. Prepare any necessary journal entries for inventory on 12/31/2018.

Answer rating: 100% (QA)

ANSWER To compute the inventory valuation using the lower of cost or market approach on an individua... View the full answer