LCM in class example

# LCM in class example - Inventory(Ch 8&9 Page 18 EXAMPLE 8.1...

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Inventory (Ch 8&9) Page 18 EXAMPLE 8.1 : The Horton Company has five inventory items on hand at the end of 2010. The year-end unit costs (determined by applying the average cost method), current unit selling prices, and estimated disposal (selling) costs for The gross profit margin for each of the Item Cost Replacement Cost Selling Price Estimated Disposal Costs A \$ 50 \$ 55 \$100 \$15 B 100 90 120 20 C 80 70 85 20 D 90 37 100 24 E 95 92 110 24

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Inventory (Ch 8&9) Page 18 EXAMPLE 8.1 : The Horton Company has five inventory items on hand at the end of 2010. The year-end unit costs (determined by applying the average cost method), current unit selling prices, and estimated disposal (selling) costs for each of the items are presented below. The gross profit margin for each of the products is 20% of the selling price. Item Cost Replacement Cost Selling Price Estimated Disposal Costs NPM A \$ 50 \$ 55 \$100 \$15 20 B 100 90 120 20 24 C 80 70 85 20 17 D 90 37 100 24 20 E 95 92 110 24 22
Inventory (Ch 8&9) Page 18 Individual Item Test: you need to figure out your LCM per unit value and then extend! Item (1) Ceiling

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## This note was uploaded on 02/22/2012 for the course ACCT 401 taught by Professor Winchel during the Spring '10 term at South Carolina.

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LCM in class example - Inventory(Ch 8&9 Page 18 EXAMPLE 8.1...

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