Cramer Corporation Has Two Products in Its Ending Inventory and Uses

question 72

Essay

Cramer Corporation has two products in its ending inventory and uses lower of cost or market to account for each.Cramer normally prices its products to maintain a 30% gross profit margin.Specific data for each product follows:B.The replacement cost of $92 is between the ceiling ($148)and floor ($88)and is higher than historical cost.
$\begin{array}{lccc} & \text { Product A } & & \text { Product B } \\\text { Historical cost }& \$ 34 & & \$ 90 \\\text { Replacement cost } & 30 & & 92 \\\text { Estimated cost to dispose } & 10 & & 52 \\\text { Estimated selling price } & 60 & & 200\end{array}$
Required:
Using the lower of cost or market rule,what unit values should Cramer use to cost Products A and B in its ending inventory?

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Definitions:

Intellectual Level

Refers to the cognitive ability of an individual including reasoning, problem-solving, and decision-making capacities.

Mental Age

A measure of an individual's cognitive ability expressed as the age at which an average person reaches the same level of cognitive performance.

Emotional Quotient

A measure of a person's ability to recognize, understand, and manage their own emotions and those of others.

Chronological Age

The actual age of a person or object as measured in years from the date of birth or creation.