nov4ch9 - Lowerofcostormarket compare"Cost". onthebalance...

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Lower of cost or market compare "Cost" to mkt value of inventory….select the lower to value on the balance cost MKT BS measure 5 4 4 write down invento 500 400 400 dr Unrealized loss      cr allowance for            adj for LCM what is market value? is the middle value of the following--(designated market value) 1. net realizable value=realizable value less costs to dispose (ceiling 2. replacement value=cost to replace the inventory 3. Net realizable value less normal profit (floor) cost was LCM cost was ex 2 items NRV RC NRV-P Cost LCM
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d 90 120 70 75 75 e 80 72 60 80 72 f 60 70 40 80 60 g 55 30 35 80 35 h i Gross profit method Given information beg inv 60000 purchases 90000 Need to determine the cost of the ending inventory bi 60000 purchase 90000 avail for sale 150000 less ei 70000 cogs 80000 Calculate the gross profit rate $ % selling price 1.25 100 cogs 1 80% gross profit rate 0.25 0.2Mark up on cost (25)/(1+ma
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This note was uploaded on 11/14/2009 for the course ACC 2338 taught by Professor Tba during the Fall '09 term at Randolph College.

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nov4ch9 - Lowerofcostormarket compare"Cost". onthebalance...

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