Presented below is information related to Rembrandt Inc.’s inventory.
| (per unit) |
Skis |
Boots |
Parkas |
||||
| Historical cost | $230.09 | $128.37 | $64.18 | ||||
| Selling price | 262.79 | 175.60 | 89.31 | ||||
| Cost to distribute | 23.01 | 9.69 | 3.03 | ||||
| Current replacement cost | 245.83 | 127.16 | 61.76 | ||||
| Normal profit margin | 38.75 | 35.12 | 25.73 | ||||
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 | $ [removed] |
| Floor | $[removed] |
| (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 | $[removed] |
| (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 | $[removed] |
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