(SOLVED) Ontario Garden Supplies uses a perpetual inventory system Ontar


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Ontario Garden Supplies uses a perpetual inventory system. Ontario Garden Supplies has these account balances at May 31, 2010, prior to making the year-end adjustments:_x0001_A year ago, the replacement cost of ending inventory was $13,400, which exceeded the cost of $12,500. Ontario Garden Supplies has determined that the replacement cost of the May 31, 2010, ending inventory is $13,000.Requirement1. Prepare Ontario Garden Supplies 2010 income statement through gross profit to show how the company would apply the lower-of-cost-or-market rule to itsinventories.

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