acct 301 - 1 Use the following information to answer the...

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1. Use the following information to answer the questions: Monterey Nursery has developed the following data for lower of cost or market valuation for its products: Selling price Cost Cost to replace Broad leaf trees: Ash: \$1,800 1,000 800 Beech 2,200 1,600 1,400 Needed leaf tree: Cedar \$2,500 1,900 1,800 Fir 3,600 3,350 3,300 Fruit trees: Apple \$1,800 1,400 1,300 Cherry 2,300 1,800 1,700 The normal profit margin on all tree is 20% of selling price and disposal costs are 10% of selling price a. Determine the balance sheet inventory carrying value assuming the LCM (lower – of- cost- or market ) rule is applied to individual trees. b. Determine the balance sheet inventory carrying value assuming the LCM rule is applied to classes of trees. c. Determine the balance sheet inventory carrying value assuming the LCM rule is applied to the total inventory. 2. Use the following information to answer these questions: Show below id the activity for one of the products of Random Creations: January 1 balance, 80 units @ \$50 \$ 4,000 Purchase: January 18, 40 units @ \$51 January 28, 40 units @ \$ 52 Sales: Jan 12, 30 units

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