Konan, Inc. needs to determine its inventory value. The following information pertains to the individual products in
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Konan, Inc. needs to determine its inventory value. The following information pertains to the individual products in ending inventory:
Product | Cost | Replacement Cost | Selling Price | Cost of Completion | Normal Profit | |||||||||||||||
L-19 | $ | 40 | $ | 38 | $ | 50 | $ | 2 | $ | 11 | ||||||||||
M-23 | 52 | 40 | 60 | 10 | 8 | |||||||||||||||
N-05 | 20 | 24 | 30 | 2 | 6 | |||||||||||||||
A) Assuming Konan uses the FIFO method for costing its inventory, the net realizable value for product L-19 is
B) Assuming Konan uses the FIFO method for costing its inventory, the reported value of product M-23 is
C) Assuming Konan uses the FIFO method for costing its inventory, write-down of inventory value for items M-23 is
D) Assuming Konan uses the FIFO method for costing its inventory, the writedown of inventory value for Product N-05 is
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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