The Collins Company has five inventory items on hand at the end of the year. ...

 

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• The Collins Company has five inventory items on hand at the end of the year. • The year-end selling prices, and estimated costs of completion, disposal, and transportation (selling costs) for each of the items are given below • The normal profit margin for each of the products is 10% of the selling price These amounts are used to calculate the ceiling and floor as follows: Items NRV (Ceiling) Selling Estimated Price Selling Costs 7,500 Normal Profit Margin (10% of Selling Price) $ 50,000 $ B$ 60,000 $ A n $ 45,000 $ D $ 50,000 $ E $ 55,000 $ O A $ 25,000 $ B$ 50,000 $ C$ 40,000 $ Replacement Cost $ 45,000 $ • Additional information related to year-end inventory cost (determined by applying the LIFO cost method) and replacement cost are given below Items Cost NRV (Ceiling) E $ 47,500 5 Total $207,500 By Individual Items 27,500 15,000 48.500 35,000 47,500 Inventory 7,500 7,500 7,000 NRV-NPM Adjusting Entry NRV-NPM Market LCM • The Collins Company has five inventory items on hand at the end of the year. • The year-end selling prices, and estimated costs of completion, disposal, and transportation (selling costs) for each of the items are given below • The normal profit margin for each of the products is 10% of the selling price These amounts are used to calculate the ceiling and floor as follows: Items NRV (Ceiling) Selling Estimated Price Selling Costs 7,500 Normal Profit Margin (10% of Selling Price) $ 50,000 $ B$ 60,000 $ A n $ 45,000 $ D $ 50,000 $ E $ 55,000 $ O A $ 25,000 $ B$ 50,000 $ C$ 40,000 $ Replacement Cost $ 45,000 $ • Additional information related to year-end inventory cost (determined by applying the LIFO cost method) and replacement cost are given below Items Cost NRV (Ceiling) E $ 47,500 5 Total $207,500 By Individual Items 27,500 15,000 48.500 35,000 47,500 Inventory 7,500 7,500 7,000 NRV-NPM Adjusting Entry NRV-NPM Market LCM

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Inventory 189000 207500 18500 Adjusting Entry Prepare the j... View the full answer