HW5 - Gain (loss) due to market fluctuations ($2,000)...

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Item No. Cost per unit Replacement Cost Net Realizable Value 1320 $3.20  $3.00  $4.15 1333 2.7 2.3 2.9 1426 4.5 3.7 4.6 1437 3.6 3.1 2.75 1510 2.25 2 2.45 1522 3 2.7 3.5 1573 1.8 1.6 1.75 1626 4.7 5.2 5.5
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Designated Market Value LMC Quantity $2.9 $3.00  $3.00  1,200 2.4 2.4 2.4 900 3.6 3.7 3.7 800 1.85 2.75 2.75 1,000 1.85 2 2 700 3 3 3 500 1.25 1.6 1.6 3,000 4.5 5.2 4.7 1,000 Net Real Value − Normal profit
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Final Inventory Value $3,600  2,160 2,960 2,750 1,400 1,500 4,800 4,700 $23,870 
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(a) Jan. 31 Feb. 28 Mar. 31 Apr. 30 Inventory at Cost  $15,000  $15,100  $17,000  $14,000  Inventory at lower-of-cost or market 14,500 12,600 15,600 13,300 Allowance amount needed to $500  $2,500  $1,400  $700     reduce inventory to market
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Unformatted text preview: Gain (loss) due to market fluctuations ($2,000) $1,100 $700 of inventory (b) Jan. 31 Loss due to market decline of inventory Allowance to reduce inventory to market Feb. 28 Loss due to market decline of inventory Allowance to reduce inventory to market Mar. 31 Allowance to reduce inventory to market Recovery of loss due to market decline o Apr. 30 Allowance to reduce inventory to market Recovery of loss due to market decline o 500 500 2000 2000 1100 of inventory 1100 700 of inventory 700...
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This note was uploaded on 09/27/2011 for the course MGT 131 taught by Professor ? during the Spring '11 term at San Diego.

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HW5 - Gain (loss) due to market fluctuations ($2,000)...

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