Ross Electronics has one product in its ending inventory. Per unit data consist of the following: cost, $35; replacement cost, $33;
selling price, $45; selling costs, $8. The normal profit is 35% of selling price.
What unit value should Ross use when applying the lower of cost or market (LCM) rule to ending inventory?
Unit value
In 2021, Winslow International, Inc.'s controller discovered that ending inventories for 2019 and 2020 were overstated by $350,000
and $650,000, respectively.
Determine the effect of the errors on retained earnings at January 1, 2021. (Ignore income taxes.)
Retained earnings would be
In 2021, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2020 of $122,000 would have been
$141,000 if FIFO had been used. Inventory at the end of 2021 is $158,000 using the new FIFO method but would have been $149,000
if the company had continued to use LIFO.
What is the effect of the change on 2021 cost of goods sold?
2021 cost of goods sold is
Ross Electronics has one product in its ending inventory. Per unit data consist of the following: cost, $33; selling price, $41; selling
costs, $5.
What unit value should Ross use when applying the lower of cost or net realizable value rule to ending inventory?
