Discuss loss method and cost of goods sold method

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price decline in the inventories? Discuss. Loss method and cost of goods sold method both would like to be used for solved. 6, Explain the rationale for the ceiling and floor in the lower-of-cost-or-market method of valuing inventories. Prevents overstatement of the value of obsolete or damaged inventories. 10, At December 31, 2017, Ashley Co. has outstanding purchase commitments for 150,000 gallons, at $6.20 per gallon, of a raw material to be used in its manufacturing process. Dec Loss form reducing inventory to LCM 24,193 Allowance to reduce inventory to LCM 24,193 12, Distinguish between gross profit as a percentage of cost and gross profit as a percentage of sales price. Convert the following gross profit percentages based on cost to gross profit percentages based on sales price: 25% on cost = 20% on sales price 33 1/3 % on cost = 25% on sales price 13 1/3 % on sales price = 15% on cost 60 % on sales price = 150% on cost
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16, The conventional retail inventory method yields results that are essentially the same as those yielded by the lower-of-cost-or-market method. Explain. For my opinion, conventional retail is high cost and value, making quality products to customers. on the other hand, lower-of –cost method is not high quality retail, costs of sale are low a bit. Depend customers like which the method. Whether they both no lose profit and same the results.
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