Rufus Company has the following items in its inventory. Selected per unit information is presented below....

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Rufus Company has the following items in its inventory. Selected per unit information is presented below. Part 1 Part 4 17,000 Part 2 Part 3 Part 5 Quantity on hand 10,000 8,000 12,500 3,250 Historical cost $ 20.00 $ 21.00 $ 20.00 $ 12.00 162.00 Selling price 25.00 28.00 30.00 15.00 185.00 Cost to sell 3.00 8.00 13.00 2.00 25.00 Replacement cost 21.00 18.00 18.00 11.00 155.00 Normal profit margin 40% 1.50 2.00 20% 10.00 For each inventory part: 1. Calculate the ceiling for each part 2. Calculate the ceiling for each part 3. What is the designated market value for each part? 4. What is the per unit lower of cost or market? 5. Show the journal entry to record the inventory at the lower of cost or market on an inventory item basis. Rufus Company has the following items in its inventory. Selected per unit information is presented below. Part 1 Part 4 17,000 Part 2 Part 3 Part 5 Quantity on hand 10,000 8,000 12,500 3,250 Historical cost $ 20.00 $ 21.00 $ 20.00 $ 12.00 162.00 Selling price 25.00 28.00 30.00 15.00 185.00 Cost to sell 3.00 8.00 13.00 2.00 25.00 Replacement cost 21.00 18.00 18.00 11.00 155.00 Normal profit margin 40% 1.50 2.00 20% 10.00 For each inventory part: 1. Calculate the ceiling for each part 2. Calculate the ceiling for each part 3. What is the designated market value for each part? 4. What is the per unit lower of cost or market? 5. Show the journal entry to record the inventory at the lower of cost or market on an inventory item basis.

Answer rating: 100% (QA)

1 Item Ceiling per unit Number of units Total Part 1 2 2200 10000 220000 8000 12500 Part 2 2000 1600... View the full answer