Determining the amount of inventory


Problem:

Wholesale Market applies lower-of-cost-or-market valuation to individual products and has collected the following data:

Product A Product B Product C
Selling price $100 $125 $80
Cost 70 75 60
Replacement cost 60 70 50
Disposal cost 15 20 8

Normal profit margin as a % of selling price:
30% 20% 20%

Determine the amount of inventory to be reported for Products A, B, and C.

Solution Preview :

Prepared by a verified Expert
Finance Basics: Determining the amount of inventory
Reference No:- TGS02060596

Now Priced at $20 (50% Discount)

Recommended (94%)

Rated (4.6/5)