Presented below is information related to Rembrandt Inc.’s inventory.
|
(per unit) |
Skis |
Boots |
Parkas |
|
Historical cost |
$190.00 |
$106.00 |
$53.00 |
|
Selling price |
212.00 |
145.00 |
73.75 |
|
Cost to distribute |
19.00 |
8.00 |
2.50 |
|
Current replacement cost |
203.00 |
105.00 |
51.00 |
|
Normal profi t margin |
32.00 |
29.00 |
21.25 |
Determine the following: (a) the two limits to market value (i.e., the ceiling and the floor) that should be used in the lower of cost or market computation for skis; (b) the cost amount that should be used in the lower of cost or market comparison of boots; and (c) the market amount that should be used to value parkas on the basis of the lower of cost or market.