Presented below is information related to Rembrandt Inc.’s inventory.
|
(per unit) |
Skis |
Boots |
Parkas |
|
Historical cost |
275.31 |
153.59 |
76.80 |
|
Selling price |
314.43 |
210.11 |
106.86 |
|
Cost to distribute |
27.53 |
11.59 |
3.62 |
|
Current replacement cost |
294.15 |
152.15 |
73.90 |
|
Normal profit margin |
46.37 |
42.02 |
30.79 |
Determine the following:
a. the two limits to market value (e.g., the ceiling and the floor) that should be used in the lower of cost or market computation for skis; (Round answers to 2 decimal places, e.g. 20.25.)
b. the cost amount that should be used in the lower of cost or market comparison of boots; (Round answer to 2 decimal places, e.g. 20.25.)
c. the market amount that should be used to value parkas on the basis of the lower of cost or market. (Round answer to 2 decimal places, e.g. 20.25.)