这是一道题的讲解的第一句话.原题如下: Kamp,Inc.sells specialized bicycle shoes.At year-end,due to a sudden increase in manufactruing costs,the replacement cost per pair of shors is $55.The historical is $43,and the current selling price is $50.The normal profit margin is 10%of the selling price,and the selling costs are $3 per pair. At which of the following amounst should each pair of shoes be recorded on Kamp's year-end balancd sheet? A $42 B $43 C $47 D$55 The answer:B Market is equal to the replacement cost subject to replacement cost being within a specific range.The upper bound is net realizable value,which is equal to selling price less selling costs for an NRV of $47.The lower bound is NRV less normal porfit for a net amount of $42.Since replacement cost is greater than NRV ,market equals NRV. Additionally,we have to use the lower of cost or market principle,so the shoes shoule be recorded at the cost of $43. | 
发表于 2008-8-29 17:17
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