Use the information in E8-1. Assume that Stiles uses the LIFO cost flow assumption and is applying

Question:

Use the information in E8-1. Assume that Stiles uses the LIFO cost flow assumption and is applying the LCM rule.

Required:
1. What is the correct inventory value for each product?
2. Next Level With regard to requirement 1, what effect does the imposition of the constraints on market value have on the inventory valuations?

Data from E8-1

Product A Product B Historical cost $ 80 $ 96 Replacement cost Estimated cost of disposal Estimated selling price 70 98 32 30 150 120

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Related Book For answer-question

Intermediate Accounting Reporting and Analysis

ISBN: 978-1337788281

3rd edition

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

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Question Posted: Jul 09, 2019 11:50 AM

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Use the information in E8-1. Assume that Stiles uses the LIFO cost flow assumption and is applying

Question:

Product A Product B Historical cost $ 80 $ 96 Replacement cost Estimated cost of disposal Estimated selling price 70 98 32 30 150 120

Step by Step Answer:

1 Under the LCM rule the market value is defined as replacement cost subject to a ceiling and a floo...View the full answer

Intermediate Accounting Reporting and Analysis

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