Additional_Chapter_9_Solutions

Additional_Chapter_9_Solutions - Additional Chapter 9...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
EXERCISE 9-2 Item Net Realizable Value (Ceiling) Net Realizable Value Less Normal Profit (Floor) Replacement Cost Designated Market Cost LCM D $90* $70** $120 $90 $75 $75 E 80 60 72 72 80 72 F 65 45 70 65 80 65 G 65 45 30 45 80 45 H 80 60 70 70 50 50 I 60 40 30 40 36 36 *Estimated selling price – Estimated selling expense = $120 – $30 = $90. **Net realizable value – Normal profit margin = $90 – $20 = $70. EXERCISE 9-3 Item No. Cost per Unit Replacement Cost Net Realizable Value Net Real. Value Less Normal Profit Designated Market Value Quantity Final Inventory Value 1320 $3.20 $3.00 $4.15* $2.90** $3.00 1,200 $ 3,600 1333 2.70 2.30 3.00 2.50 2.50 900 2,250 1426 4.50 3.70 4.60 3.60 3.70 800 2,960 1437 3.60 3.10 2.95 2.05 2.95 1,000 2,950 1510 2.25 2.00 2.45 1.85 2.00 700 1,400 1522 3.00 2.70 3.40 2.90 2.90 500 1,450 1573 1.80 1.60 1.75 1.25 1.60 3,000 4,800 1626 4.70 5.20 5.50 4.50 5.20 1,000 4,700 *** $24,110 *$4.50 – $.35 = $4.15. **$4.15 – $1.25 = $2.90.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

Additional_Chapter_9_Solutions - Additional Chapter 9...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online