# Final Exam ACC 422

Presented below is information related to Rembrandt Inc.’s inventory.

 (per unit) Skis Boots Parkas Historical cost \$255.93 \$142.78 \$71.39 Selling price 292.30 195.32 99.34 Cost to distribute 25.59 10.78 3.37 Current replacement cost 273.44 141.44 68.70 Normal profit margin 43.10 39.06 28.62

Determine the following:

 (a) the two limits to market value (e.g., the ceiling and the floor) that should be used in the lower of cost or market computation for skis;(Round answers to 2 decimal places, e.g. 20.25.)

 Ceiling \$ Floor \$ (b) the cost amount that should be used in the lower of cost or market comparison of boots;(Round answer to 2 decimal places, e.g. 20.25.)
 Cost amount \$ (c) the market amount that should be used to value parkas on the basis of the lower of cost or market.(Round answer to 2 decimal places, e.g. 20.25.)

 Market amount \$

3. Matlock Company uses a perpetual inventory system. Its beginning inventory consists of 55 units that cost \$33 each. During June, the company purchased 166 units at \$33 each, returned 7 units for credit, and sold 138 units at \$55 each. Journalize the June transactions.

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