Webapplying the LCM rule, the inventory of supplies would be valued at: When using the gross profit C. Cost of goods sold A. 45000 method to estimate ending inventory, it is not necessary to know On July 8, a fire destroyed the D. 280000 C. Cost of goods sold entire merchandise inventory on hand of Larrenaga Wholesale Corporation. WebApr 28, 2024 · In applying LCM, market cannot be: - 16042162. angiee8914 angiee8914 04/28/2024 Business High School answered • expert verified In applying LCM, market cannot be: A. Less than net realizable value minus a normal profit margin. B. Net realizable value less reasonable completion and disposal costs.
Lower of Cost or Net Realizable Value Applied
WebQuestion: Under the LIFO retail method, the denominator in the cost-to-retail percentage includes: Net markups and net markdowns. Neither net markups nor net markdowns. Net markups, but not net markdowns. Net markdowns, but not net markups. I chose the third one but it was marked wrong. Thanks. WebIn applying LCM, market cannot be: A. Less than net realizable value minus a normal profit margin.Study anywhere with the Quizlet mobile app. Get it here. 9flashcards/ 1/10entire merchandise inventory Masterlink Co., in applying the lower of cost or market C. Option C (Cost is Greater than NRV: Yes / NRV is Greater than replacement Cost: NO) terms classes
Lower of Cost or Market (LCM) - Definition, Inventory …
WebMar 26, 2016 · Different application methods. You can apply lower of cost or market (LCM) to the entire inventory, or you can cherry-pick between inventory items. The general rule is … WebApplication NRV, in the context of inventory, is the estimated selling price in the normal course of business, less reasonably predictable costs of completion, disposal, and transportation. Obviously, these measurements can be somewhat subjective, and may require the exercise of judgment in their determination. WebSpeakers. 30,750.00. Wiring. 2,970.00. 227,952.00. The LCNRV for sound systems was cost. The LCNRV for speakers was market, and the LCNRV for wiring was cost. In total, using the class system, we would adjust inventory down to $227,952. In the next section, we’ll look at four different ways to make an LCNRV adjustment to inventory. terms clustering