Question: Instructions Using the lower - of - cost - or - market rule, determine the proper unit value for balance sheet reporting purposes at December

Instructions

Using the lower

-

-

cost

-

-

market rule, determine the proper unit value for balance sheet reporting purposes at December

31, 2014,

for each of the inventory items above.

4 . (4

points

)

Hornacek Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May.

Instructions

Compute the estimated inventory at May

31,

assuming that the gross profit is

\ (28 \ % \)

of sales.

Instructions Using the lower - of - cost - or -

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