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Application of Lower of Cost or Market Rule Taylor Inc. has the following information...

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Accounting

Application of Lower of Cost or Market Rule
Taylor Inc. has the following information for six inventory items, reported using the retail method, on June 30. The normal profit margin is 30% of selli
Required
a. Determine the inventory cost to report on the balance sheet on June 30 assuming that the company applies the lower of cost or market value rule t
. Per Unit
Total
Total
Cost
to Cost Replacement Total
Sell per Cost Replacement
Ceiling
Floor
Market
Cost
Lower of
a. Determine the inventory cost to report on the balance sheet on June 30 assuming that the company applies the lower of cost or market value rule to each individual inventory item.
b. Record the entry to adjust inventory to the lower of cost or market by adjusting inventory tarough an allowance account and expense through cost of goods sold.

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