Cost of Inventory for Robin Corporation
Not what you're looking for?
BE9-2
Robin Corporation has the following four items in its inventory:
Item Cost Replacement Cost Net Realizable Value NRV less Norm Profit Margin
Jokers 2,000 1,900 2,100 1,600
Penguins 5,000 5,100 4,950 4,100
Riddlers 4,400 4,550 4,625 3,700
Scarecrows 3,200 2,990 3,830 3,070
Determine the final lower of cost or market inventory value for each item.
BE9-3 Battletoads Inc. uses a perpetual inventory system. At January 1, 2008, inventory was $214,000 at both cost and market value. At December 31, 2008, the inventory was $286,000 at cost and $269,000 at market value. Prepare the necessary December 31 entry under (a) the direct method and (b) the indirect method.
Purchase this Solution
Solution Summary
Computation and process illustrated for you. No references.
Solution Preview
BE9-2
The first step is to decide the market cost for each item, which is the cost in the middle of replacement cost, net realizable value (ceiling), and NRV less normal profit margin (floor). Next compare the market cost to the actual cost and choose the lower of the cost of market.
COST ...
Purchase this Solution
Free BrainMass Quizzes
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.