Boulder,Inc Using the Lower-Of-Cost-Or-Market Rule,compute the Total Valuation for Each Inventory

question 124

Short Answer

Boulder,Inc.is computing its inventory at December 31,2010.The following information relates to the five major inventory items regularly stocked for resale $$\begin{array}{l}\begin{array} { cc} \\\\\text { Item}& \text { Item Ouantity on Hand }\\\mathrm{A} & 100 \\\mathrm{~B} & 150 \\\mathrm{C} & 25 \\\mathrm{D} & 300 \\\mathrm{E} & 700\end{array}\begin{array} { cc } \text { December 31,2009 } & \text { Replacement Cost } \\\text { Unit Cost when } & \text { (Market) at December 31. } \\\text { Acquired (FIFO) } & 2009\\\$ 40 & \$ 35\\\$ 50 & \$ 52 \\\$ 100 & \$ 80 \\\$ 60 & \$ 62 \\\$ 15 & \$ 12\end{array}\end{array}$$


Using the lower-of-cost-or-market rule,compute the total valuation for each inventory item at December 31,2010,and the total inventory valuation.

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Definitions:

Depression

A psychological disorder characterized by persistent sadness, loss of interest in activities, and a range of emotional and physical problems.

Mania

A mental health condition characterized by periods of great excitement, euphoria, delusions, and overactivity.

Pessimistic Explanatory

A cognitive style where individuals tend to attribute negative events to stable, internal, and global causes, expecting future failures.

Global

Relating to or encompassing the whole world; worldwide in scope or application.