In this simulation, you will address questions related to inventory valuation andmeasurement. KWW Professlonal Simulation Inventory Valuation

In this simulation, you will address questions related to inventory valuation andmeasurement.

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KWW Professlonal Simulation Inventory Valuation Time Remaining hour 40 minutes Unsplit Split Horie Spit Vertical Spreadsheet Calculator Eit LCM Jaurnal Entry Explanation Rosourcos Directions Situation T.L. Wang Inc. manufactures and sells four products, the inventories of which are priced at cost or market, whichever is lower. A normal profit margin rate of 30% is usually maintained on each of the four products. The following information was compiled as of December 31, 20 12. Original Cost Cost to Replace Estimated Cost to Dispose $ 6.00 Expected Selling Price* $ 30.00 Product $17.50 $14.00 48.00 78.00 42.00 45.00 26.00 15.00 20.50 100.00 35.00 80.00 47.50 95.00 *Normal profit margin is 30% of selling price. LCM Jeurnal Entry Explanation Resourcon Directione Situation Use a computer spreadsheet to prepare a schedule containing unit values (Including "floor" and "celling") for determining the lower-of-cost-or-market (LCM) on an Individual-product basis. The last column of the schedule should contain, for each product, the unit value for the purpose of inventory valuation resulting from the application of the lower-of-cost-or-market rule to 1,000 units. LCM Jeurnal EntryExplaeation Rosource0 Directions Situstion Prepare the jourmal entry to record the lower-of-cost-or-market for T.L. Wang. Assume 1,000 units of each product and that T.L. Wang uses a perpetual inventory system. Jeurnal Entry Explanation Directione Situation Resources Prepare a brief memorandum to explain why expected selling prices are important in the application of the lower-of-cost-or-market rule to 1,000 units.