Description of this paper

Whicher Corporation had three products in its endi...

Description

Solution


Question

Whicher Corporation had three products in its ending inventory at December 31, 2009. Whicher Corporation considers a profit margin of 15% of the sales price average for product 1 and a profit margin of 10% of the sales price average for products 2 and 3. When Whicher Corporation sells its products, it expects to incur selling costs equal to 5% of the selling price. The chart below gives further information about each product: Product, Cost, Replacement Cost, Selling Price Product 1 $150 $160 $180 Product 2 $180 $155 $160 Product 3 $120 $100 $120 Required a. What is the amount of write-down (if any) required using US GAAP? Calculate the write-down on both an individual and a total inventory basis. b. What is the amount of write-down (if any) required using IFRS? Calculate the write-down on both an individual and a total inventory basis.

 

Paper#6622 | Written in 18-Jul-2015

Price : $25
SiteLock