Sandhill Inc. has the following information related to an item in its ending inventory. Packit (Product # 874) has a cost of $91, a replacement cost of $71, a net realizable value of $81, and a normal profit margin of $2. What is the final lower-of-cost-or-market inventory value for Packit?

The lower of cost to market value = $71

Explanation:

According to International Accounting Standards (IAS 2) , Inventory should be measured at the lower of cost and net realizable value .

But the US GAAP differs on the measurement criteria, The US GAAP states that inventory should be measured at the lower of cost and the market( replacement cost)

So using the USA GAAP,

Market-Replacement cost- $71

Net realizable value = $81

Lower of the two is the Net realizable value- $71

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

your welcome leave a rate and a < 3

answer; exemplars;