The Controller of Greene Yard Company Is Applying the Lower-Of-Cost-Or-Market

question 37

Essay

The controller of Greene Yard Company is applying the lower-of-cost-or-market basis of valuing its ending inventory. The following information is available: $\begin{array}{lcc}& \underline{\text { Cost} } & \underline{ \text { Market Value }}\\\text { Lawnmowers: }\\\text { Self propelled } & \$ 16,800 & \$ 17,000 \\ \text { Push type } & \underline{19,500 }&\underline{ 18,000} \\ \text { Total } & \underline{36.300 }&\underline{ 35,000} \\\end{array}$

$\text { Snowblowers: }$
$\begin{array}{lrr}\text { Manual } & 29,800 & 30,000 \\\text { Self-start } & \underline{19,700}& \underline{21,000} \\\quad \text { Total } & \underline{49,000} & \underline{ 51,000} \\\text { Total inventory } & \underline{\$ 85,800} & \underline{\$86,000}\end{array}$ Instructions
Compute the value of the ending inventory by applying the lower-of-cost-or-market basis.

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Definitions:

Critical Value

A critical value is a threshold or cut-off value that defines regions where the test statistic leads to the acceptance or rejection of the null hypothesis in hypothesis testing.

Frequency Distributions

A statistical analysis tool that shows how often each different value in a set of data occurs, often illustrated as a table or graph.

Wilcoxon Signed-Rank Sum Test

This is a type of statistical test that doesn't rely on predefined parameters and is utilized to analyze whether two related samples, matched samples, or repeated measures on a single sample have differing population mean ranks.

Matched Pair

A technique in experimental design where pairs of subjects are closely matched based on certain key characteristics, and one subject from each pair is assigned to each experiment group.