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Rashford Medical Supplies uses LIFO cost flow assumption and has developed the following data for its...

Rashford Medical Supplies uses LIFO cost flow assumption and has developed the following data for its products: Surgical Equipment Surgical Supplies Number of units in inventory 530 620 Per unit: Selling price 425 250 Cost 335 247 Replacement cost 345 243 Cost to sell 42 44 Normal gross profit ratio 40% 45% Normal gross profit ratio is expressed as a percentage of selling price. Rashford adjusts an allowance account at year-end to record net realizable value adjustments to its inventory. All products are reported at cost at the beginning of the year. The entry at year-end will:

Rashford Medical Supplies uses LIFO cost flow assumption and has developed the following data for its products:

Surgical Equipment Surgical Supplies
Number of units in inventory 530 620
Per unit:
Selling price 425 250
Cost 335 247
Replacement cost 345 243
Cost to sell 42 44
Normal gross profit ratio 40% 45%

Normal gross profit ratio is expressed as a percentage of selling price. Rashford adjusts an allowance account at year-end to record net realizable value adjustments to its inventory. All products are reported at cost at the beginning of the year. The entry at year-end will:

Rashford Medical Supplies uses LIFO cost flow assumption and has developed the following data for its products:

Surgical Equipment Surgical Supplies
Number of units in inventory 530 620
Per unit:
Selling price 425 250
Cost 335 247
Replacement cost 345 243
Cost to sell 42 44
Normal gross profit ratio 40% 45%

Normal gross profit ratio is expressed as a percentage of selling price. Rashford adjusts an allowance account at year-end to record net realizable value adjustments to its inventory. All products are reported at cost at the beginning of the year. The entry at year-end will:

Multiple Choice

  • reduce equity by $25,420

  • increase liabilities by $64,660

  • reduce equity by $95,170

  • reduce assets by $95,170

Solutions

Expert Solution

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PLEASE ------PLEASE KINDLY UP VOTE IT HELPS ME THANK YOU IN ADVANCE

ekkarill92 answered 1 year ago
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