Please help me to do the number 3 requirement, because I have got the solution for 1 and 2 aldready.Additional data:The disposal cost of each inventory A, B, C, D, and E amounted to 10% of the inventorycost.The normal (gross) profit margin of each inventory A, B, C, D, and E was 100% of theinventory cost.Required:Determine the selling price per unit of each inventory A, B, C, D, and E Complete the last four columns in the table above using the lower-of-cost-or-market rule Determine the total cost and final inventory value. Prepare the necessary journal entry at 12/31/20 to reflect the loss due to market decline in value of inventory ABDEFGHKFinalReplacement Normal profit Sellingcost/unitNumberInventoryCost/unitDisposal cost CeilingFloorMarketinventoryof unitsmarginprice/ unitvalue$ 1.00 $$ 1.50 $$ 1.50 $$ 2.00 $$ 2.50 $0.80 $1.40 $1.50 $2.20 $4.90 $1.00 $1.50 $1.50 $2.00 $2.50 $2.00 $3.00 $3.00 $4.00 $5.00 $0.10 $ 950.00 $949.00 $ 400.00 $ 400.000.15 $ 570.00 $568.50 $ 280.00 $ 280.000.15 $ 855.00 $853.50 $ 450.00 $ 450.000.20 $ 380.00 $378.00 $ 220.00 $ 220.000.25 $ 475.00 $472.50 $ 490.00 $ 472.50$1,822.502A5003B200430051006.100Total

Name: Please help me to do the number 3 requirement, because I have got the
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Description: Please help me to do the number 3 requirement, because I have got the solution for 1 and 2 aldready.Additional data:The disposal cost of each inventory A, B, C, D, and E amounted to 10% of the inventorycost.The normal (gross) profit margin of each in

As per IAS 2 inventories are valued at either cost or market value whichever comes lower. For the…

Answered: Please help me to do the number 3…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please help me to do the number 3 requirement, because I have got the solution for 1 and 2 aldready.

Additional data:

The disposal cost of each inventory A, B, C, D, and E amounted to 10% of the inventory

cost.
The normal (gross) profit margin of each inventory A, B, C, D, and E was 100% of the

inventory cost.

Required:

Determine the selling price per unit of each inventory A, B, C, D, and E
Complete the last four columns in the table above using the lower-of-cost-or-market rule
Determine the total cost and final inventory value. Prepare the necessary journal entry at 12/31/20 to reflect the loss due to market decline in value of inventory

A
B
D
E
F
G
H
K
Final
Replacement Normal profit Selling
cost/unit
Number
Inventory
Cost/unit
Disposal cost Ceiling
Floor
Market
inventory
of units
margin
price/ unit
value
$ 1.00 $
$ 1.50 $
$ 1.50 $
$ 2.00 $
$ 2.50 $
0.80 $
1.40 $
1.50 $
2.20 $
4.90 $
1.00 $
1.50 $
1.50 $
2.00 $
2.50 $
2.00 $
3.00 $
3.00 $
4.00 $
5.00 $
0.10 $ 950.00 $949.00 $ 400.00 $ 400.00
0.15 $ 570.00 $568.50 $ 280.00 $ 280.00
0.15 $ 855.00 $853.50 $ 450.00 $ 450.00
0.20 $ 380.00 $378.00 $ 220.00 $ 220.00
0.25 $ 475.00 $472.50 $ 490.00 $ 472.50
$1,822.50
2
A
500
3
B
200
4
300
5
100
6.
100
Total

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