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3 years ago

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Gard Inc. has compiled the following information related to its five products. Costs of disposal are estimated to be 10% of sell

ing price, and gross profit is estimated to be 25% of the selling price. Determine the value of inventory applying the lower-of-cost-or-market rule to each individual inventory item.

1 answer:

Ber [7]3 years ago

4 0

Answer:

Item Inventory at the lower-of-cost-or-market

#1 $214.50

#2 $240.00

#3 $266.50

#4 $315.00

#5 $422.50

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question. See attached pdf file for the complete question.

Also note: See the attached excel file for the determination of the value of inventory by applying the lower-of-cost-or-market rule.

From the attached excel file, we have:

Item Inventory at the lower-of-cost-or-market

#1 $214.50

#2 $240.00

#3 $266.50

#4 $315.00

#5 $422.50

<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark"> xlsx </span>

<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark"> pdf </span>

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Answer:

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