Please show how you get to the answer and explain it! Please thoroughly show how to do
Question:
Please show how you get to the answer and explain it! Please thoroughly show how to do this! I'm so confused.
Given the following information for Gator Company who uses the LIFO method:
Net | NRV Minus | ||||
Realizable | Replacement | Normal | |||
Item | Quantity | Cost | Value | Cost | Profit |
1 | 1 | $17.70 | $24.60 | $18.00 | $17.10 |
2 | 1 | 10.80 | 8.28 | 9.30 | 5.58 |
3 | 1 | 72.00 | 64.80 | 67.20 | 57.60 |
4 | 1 | 4.80 | 3.12 | 2.88 | 2.64 |
5 | 1 | 12.00 | 12.30 | 12.60 | 11.10 |
6 | 1 | 48.00 | 45.60 | 38.40 | 40.80 |
Required:
a. | Determine the lower of cost or market value for each inventory item for Gator Company. |
b. | Determine the lower of cost or market value for Gator Company's inventory if the lower of cost or market rule is applied to the total inventory. |
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta