Problem #5 (Lower of Cost or Market - LCM) Melissa's Wing-Bang Washing Machine Mfg. makes washing...

  

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Problem #5 (Lower of Cost or Market - LCM) Melissa's Wing-Bang Washing Machine Mfg. makes washing machines. Most of Melissa's washing machines are standard models and are sold on the basis of catalog prices. The company has adopted a lower of FIFO cost or market approach applied to inventory on an individual item basis. At December 31, 2021 the following finished washing machines appear in the company's inventory. Finished Washers - Models --> A C D 2021 catalog selling price $ 700 $ 800 $ 1,000 750 $ 495 $ 460 $ 610 $ 740 FIFO cost per inventory list Est. cost to re-manufacture (REPCO) Costs of disposal 440 480 $ 615 S 810 145 $ 160 $ 180 $ 200 "Normal" gross profit margin 15% 20% 22% 24% # of units in 12-31-21 inventory 800 500 1,000 600 Calculate the: a. "Designated" market for each item b. LCM unit cost assigned to each item @ 12-31-21 c. LCM total inventory value d. Total amount of the inventory "write-down" @ 12-31-21 is sssss is $ $ $ ess $ BI + Problem #5 (Lower of Cost or Market - LCM) Melissa's Wing-Bang Washing Machine Mfg. makes washing machines. Most of Melissa's washing machines are standard models and are sold on the basis of catalog prices. The company has adopted a lower of FIFO cost or market approach applied to inventory on an individual item basis. At December 31, 2021 the following finished washing machines appear in the company's inventory. Finished Washers - Models --> A C D 2021 catalog selling price $ 700 $ 800 $ 1,000 750 $ 495 $ 460 $ 610 $ 740 FIFO cost per inventory list Est. cost to re-manufacture (REPCO) Costs of disposal 440 480 $ 615 S 810 145 $ 160 $ 180 $ 200 "Normal" gross profit margin 15% 20% 22% 24% # of units in 12-31-21 inventory 800 500 1,000 600 Calculate the: a. "Designated" market for each item b. LCM unit cost assigned to each item @ 12-31-21 c. LCM total inventory value d. Total amount of the inventory "write-down" @ 12-31-21 is sssss is $ $ $ ess $ BI +

Answer rating: 100% (QA)

Finished Washers Models A B C D Total 2021 catalog selling price 700 750 ... View the full answer