# Lower-of-Cost-or-Market

I need help on this…please put in excel..Thank you..

————-
Garcia Home Improvement Company installs replacement siding, windows, and louvered glass doors for single family homes and condominium complexes in northern New Jersey and southern New York. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31, 2010, and Jim Alcide, controller for Garcia, has gathered the following data concerning inventory.

At May 31, 2010, the balance in Garcia’s Raw Material Inventory account was \$408,000, and the Allowance to Reduce Inventory to Market had a credit balance of \$27,500. Alcide summarized the relevant inventory cost and market data at May 31, 2010, in the schedule below.

Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Garcia’s May 31, 2010, financial statements for inventory under the lower-of-cost or-market rule as applied to each item in inventory. Devereaux expressed concern over departing from the cost principle.

Replacement　 　Sales　　Net Realizable　　　Normal
Cost　　　　Cost　　　　Price　　　Value　　　　　　Profit

Aluminum siding　　　　\$ 70,000　 \$ 62,500　　\$ 64,000　 \$ 56,000　　　　　\$ 5,100

Cedar shake siding　　　　86,000　 　79,400　 　94,000　　 84,800　　　　　　7,400

Louvered glass doors　　 112,000　 　124,000　 　186,400　 168,300　　　　　 18,500

Thermal windows 　　　 140,000　 　126,000　 154,800　 140,000　　　　 　15,400

Total　 　　　　　　　\$408,000　　\$391,900 \$499,200　 \$449,100　　　　 \$46,400

Instructions

a. 1. Determine the proper balance in the Allowance to Reduce Inventory to Market at May 31, 2010.
2. For the fiscal year ended May 31, 2010, determine the amount of the gain or the loss that would be recorded due to the change in the Allowance to Reduce Inventory to Market.

b. Explain the rationale for the use of the lower-of-cost-or-market rule as it applies to inventories.

Calculate the price
Pages (550 words)
\$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with TheBestPaperWriters
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Thank you!
Customer 452451, November 27th, 2022
English 101
Very good job. I actually got an A
Customer 452443, September 25th, 2022
Job well done. Finish paper faster than expected. Thank you!
Customer 452451, October 3rd, 2022
Anthropology
Excellent services will definitely come back
Customer 452441, September 23rd, 2022
Nursing
The paper was EXCELLENT. Thank you
Customer 452449, September 23rd, 2022
Architecture, Building and Planning
The assignment was well written and the paper was delivered on time. I really enjoyed your services.
Customer 452441, September 23rd, 2022
Anthropology
excellent loved the services
Customer 452443, September 23rd, 2022
Psychology
Thanks a lot the paper was excellent
Customer 452453, October 26th, 2022
Theology
Job well done and completed in a timely fashioned!
Customer 452451, November 18th, 2022
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend