Pair Company sells one product and uses the last-in, first-out (LIFO) method to determine Inventory cost....

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Pair Company sells one product and uses the last-in, first-out (LIFO) method to determine Inventory cost. Information for the month of January follows: Unit Cost Units Beginning inventory, 1/1 Purchases, 1/4 Sales 3,000 $ 4.70 8,000 7,500 $ 3.90 Pair has determined that at January 31 the replacement cost of its inventory was $4 per unit and the net realizable value was $4.90 per unit. Pair's normal profit margin is $1 per unit. Pair applies the lower of cost or market rule to total Inventory and records any resulting loss. At January 31, what should be the net carrying amount of Pair's inventory? Pair Company sells one product and uses the last-in, first-out (LIFO) method to determine Inventory cost. Information for the month of January follows: Unit Cost Units Beginning inventory, 1/1 Purchases, 1/4 Sales 3,000 $ 4.70 8,000 7,500 $ 3.90 Pair has determined that at January 31 the replacement cost of its inventory was $4 per unit and the net realizable value was $4.90 per unit. Pair's normal profit margin is $1 per unit. Pair applies the lower of cost or market rule to total Inventory and records any resulting loss. At January 31, what should be the net carrying amount of Pair's inventory?

Answer rating: 100% (QA)

To solve this problem we need to follow these steps 1 Determine the cost of the ending inventory usi... View the full answer