The following information is available for Digital Image Corporation for the year ended December 31, 2013:
Ending inventory:
a. Compute gross margin as it would appear on the income statement valuing ending inventory at historical cost.
b. Compute gross margin as it would appear on the income statement valuing ending inventory at lower-of-cost-or-net-realizable-value.

Question

The following information is available for Digital Image Corporation for the year ended December 31, 2013:
  Ending inventory:
  a. Compute gross margin as it would appear on the income statement valuing ending inventory at historical cost.
b. Compute gross margin as it would appear on the income statement valuing ending inventory at lower-of-cost-or-net-realizable-value.

Quizplus · Accepted Answer

The Answer of The following information is available for Digital Image Corporation for the year ended December 31, 2013:
  Ending inventory:
  a. Compute gross margin as it would appear on the income statement valuing ending inventory at historical cost.
b. Compute gross margin as it would appear on the income statement valuing ending inventory at lower-of-cost-or-net-realizable-value.

The Following Information Is Available for Digital Image Corporation for the Year