Week 3 Individual Assignment Intermediate Accounting Text

# Week 3 Individual Assignment Intermediate Accounting Text -...

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(Lower-of-cost-or-market The inventory of 3T company on December 31, 2008 consists of the following terms Part No. Quantity Cost per Unit Cost to Replace per Unit Lower of cost or market 110 600 \$90 \$100 a. \$90 111 1000 60 52 a. 52 112 500 80 76 a. 76 113 200 170 180 a. 170 120 400 205 208 a. 205 121 1600 16 14 a. 14 122 300 240 235 a. 235 b. Part No. 121 is obsolete and has a realizable value of \$0.20 each as scrap. Instructions a. Determine the inventory as of December 31, 2008, by the lower-of-cost-or-market method, b. Determine the inventory by the lower-of-cost-or-market method, applying the method to th Reference: http://accountinginfo.com/study/inventory/inventory-150.htm

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Unformatted text preview: If the current replacement cost is between the floor and the ceiling, the current replacement cos If the current replacement cost is greater than the ceiling, the ceiling amount is the market amou If the current replacement cost is lower than the floor, the floor amount is the market amount. LCM Inventory \$54,000 \$52,000 \$38,000 \$34,000 \$82,000 \$22,400 \$70,500 \$352,900 , applying this method directly to each item he total of the inventory. st is the market amount. unt....
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## This note was uploaded on 11/08/2010 for the course ACCOUNTING 422 taught by Professor Asd during the Spring '10 term at University of Phoenix.

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Week 3 Individual Assignment Intermediate Accounting Text -...

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