Benedictine University - ACCOUNTING 211 Intermediate Acctg– Chapter 9 1)When using the gross profit method to estimate ending inventory, it is not necessary to know:         2

Benedictine University - ACCOUNTING 211

Intermediate Acctg– Chapter 9

1)When using the gross profit method to estimate ending inventory, it is not necessary to know:

2. How much loss on purchase commitment will Johnson recognize in 2015?

3. Sullivan Corporation. has determined its year­end inventory on a FIFO basis to be $500,000. Information pertaining to that inventory is as follows:

Selling price $520,000 Disposal costs 30,000 Normal profit margin 60,000 Replacement cost 440,000

When applying the lower­of­cost­or­market rule to inventory valuation according to International Financial Reporting Standards (IFRS), market always is:

4. What should be the carrying value of Montana's inventory?

5. In determining lower­of­cost­or­market, market is the expected selling price under normal operations.

6. Retrospective treatment of prior years' financial statements is required when there is a change from:

7. The primary motivation behind LCM is consistency.

8. An argument against the use of LCM is its lack of: