The Warren Company Uses the Perpetual Inventory System and Has

question 139

True/False

The Warren Company uses the perpetual inventory system and has computed the cost of its inventory to be $12,800 as follows: 200 units of Product A at a cost per unit of $20; 300 units of Product B at a cost per unit of $24; and 100 units of Product C at a cost per unit of $16. The current replacement cost of each of the above items is $25, $22 and $14, respectively. Warren's accountant is not sure yet whether to apply the lower-of-cost-or-market rule to each individual item or to the entire stock of inventory in the aggregate. Indicate whether each of the following statements pertaining to the Warren Company is true or false.________ a)When referring to Product B, the "cost" totals $7,200.________ b)If Warren applies the lower-of-cost-or-market rule to each individual inventory item, Product A would be listed at $25 per unit.________ c)Warren would record a write-down of inventory if it applies this rule to each individual inventory item but would not have a write-down if it applies the rule to the entire stock of inventory in the aggregate.________ d)If Warren applies this rule to each individual inventory item, inventory of $12,000 will be shown on the balance sheet.________ e)The lower of cost or market is $1,600 for the 100 units of Product C.

Analyze sociocultural and economic challenges facing families and their implications for health.

Evaluate instrumental functioning within the family context to assist in patient care.

Utilize effective communication strategies to promote patient compliance and understanding regarding health care practices.

Identify characteristics and signs of healthy family dynamics.

---

Definitions:

Fair Value

An estimate of the market value of an asset or liability, based on current prices in an active market or through valuation techniques.

Corporate Existence

The legal status that allows a company to operate as a distinct entity, enabling it to buy, sell, own assets, and incur liabilities.

Common Stock

A type of equity security that represents ownership in a corporation, giving holders the right to vote on corporate matters and receive dividends.

Par Value

The nominal or face value of a bond, share of stock, or other security, typically set at the time it is issued.