Determine the proper carrying value of each inventory item using the lower of cost or market method.
|
Item |
Cost |
Replacement Cost |
Estimated Sales Price |
Disposal Costs |
Normal Profit |
|
A |
11.00 |
10.00 |
16.00 |
1.80 |
4.00 |
|
B |
12.00 |
12.00 |
20.00 |
1.60 |
2.50 |
|
C |
5.00 |
4.00 |
9.50 |
1.90 |
1.00 |
|
D |
14.00 |
15.00 |
15.00 |
2.40 |
3.50 |
Can someone explain to me what the Disposal Cost is? And how to calculate this problem?
