Question: Using the following data regarding clothing inventory, determine the value of the inventory at the lower of cost and NRV. Complete the calculation on an

Using the following data regarding clothing inventory, determine the value of the inventory at the lower of cost and NRV. Complete the calculation on an individual basis for model numbers 236, 238, and 135 and for the whole of the 333 series.

a. At what amount should the inventory be valued?
b. What possible reasons can explain the changes in the price? What are selling costs?
c. Will the company sell the inventory for its value as calculated in (a) above?

Inventory Cost per Price per Direct Selling Model Number Quantity Unit Unit Costs 236 238 135 333- 333 b 333 -c $53,21 12.33 24.21 25.D0 30.00 35.DO $99.99 9.99 19.99 29.99 29.99 49.99 $550 82 42 12 60 15

Step by Step Solution

★★★★★

3.46 Rating (169 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Unit Unit Direct Total Inventory Cost Selling Selling Lower Model Number Quantity Price Price C... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

529-B-A-L (5847).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Using the following data related to automobile parts inventory, determine the value of the inventory at the lower of cost and NRV. Complete the calculation on an individual basis for model numbers...

Using the following data, compute cost of goods sold. Inventory, December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 45,000 Inventory, January 1 . . . . . ....

Using the following data, compute net sales. Sales discounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,000 Accounts receivable, ending. . . . . . . . . ....

Hi. I need Chapter 11 part 1-4 Let me know. Thanks! (it wont letme add more than $8, but I will give $12+ tip) Personal Finance, Fifth Edition by Jeff Madura BUILDING YOUR OWN FINANCIAL PLAN WORKBOOK...

I need Chapter 2 & 3 finished. Chapter 4 & 5, Chapter 6 & 7, & Chapter 8. Some of this is completed, but it isn't 100% finished. Let me know if you can get to it. Personal Finance, Fifth Edition by...

I need your help with this: Can you please quote from the attached chapters / resource if possible? Corporations often use different costs of capital for different operating divisions. Using an...

Chapters 9 and 10 questions 1. Marilee's Electronics uses a periodic inventory system and the average cost retail method to estimate ending inventory and cost of goods sold. The following data is...

Assignment Instructions Resource: ABC Financial Data Excel and ABC Supplemental Data Excel spreadsheets, and the Week 2 HW template for assignment. Calculate the deferred tax asset or liability of an...

BUS 285 - Fall 2018 Course Project Requirements: Read the attached case study carefully. Complete any of the questions or requirements noted in each part. Upon completion, organize the various...

1. Two suppliers of TV sets are being considered by an appliance store. Is there a difference in the quality of the TV sets sold by the two suppliers? A sample of seven recent shipments from Supplier...

On January 1, 2010, $1,000,000, 10-year, 10% bonds, were issued for $970,000. Interest is paid annually on January 1. If the issuing corporation uses the straight-line method to amortize discount on...

In comparing the financial ratios of a steel company and a grocery store Select one: a . The grocery store will likely have a lower profit margin and higher inventory turnover ratio than the steel...

Notice of Assignment. As the building services manager for Fulton County, Georgia, Steve Fullard oversaw custodial services. Fullard determined which services to contract for, received the bids, and...

. 4. According to the University Admissions website, Valdosta State undergraduate students have an average High School GPA of 3.13 on a 4.0 scale. Interested in group differences, a researcher wants...

Please help fill in all blanks/bubbles For example, assume Ella wants to earn a return of 9.00% and is offered the opportunity to purchase a $1,000 par value bond that pays a 7.50% coupon rate...

GTB, Inc., has a 20 percent tax rate and has $86,136,000 in assets, currently financed entirely with equity. Equity is worth $6 per share, and book value of equity is equal to market value of equity....