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8 apply Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2021 year-end inventory is as follows:   Inventory, by Product Category Quantity   Per Unit Cost   Net Realizable Value Tools:                     Hammers 100     $ 5.90     $ 6.40   Saws 290       10.90       9.90   Screwdrivers 390       2.90       3.50   Paint products:                     1-gallon cans 590       6.90       5.90   Paint brushes 100       4.90       5.40     Required: 1. Determine the carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule is applied to (a) individual products, (b) product categories, and (c) total inventory. 2. Assuming inventory write-downs are common for Almaden, record any necessary year-end adjustment amount for each of the LCNRV applications in requirement 1.

8 apply Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2021 year-end inventory is as follows:   Inventory, by Product Category Quantity   Per Unit Cost   Net Realizable Value Tools:                     Hammers 100     $ 5.90     $ 6.40   Saws 290       10.90       9.90   Screwdrivers 390       2.90       3.50   Paint products:                     1-gallon cans 590       6.90       5.90   Paint brushes 100       4.90       5.40     Required: 1. Determine the carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule is applied to (a) individual products, (b) product categories, and (c) total inventory. 2. Assuming inventory write-downs are common for Almaden, record any necessary year-end adjustment amount for each of the LCNRV applications in requirement 1.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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8 apply Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2021 year-end inventory is as follows:
 

Inventory,
by Product Category		 Quantity   Per Unit
Cost		   Net Realizable Value
Tools:                    
Hammers 100     $ 5.90     $ 6.40  
Saws 290       10.90       9.90  
Screwdrivers 390       2.90       3.50  
Paint products:                    
1-gallon cans 590       6.90       5.90  
Paint brushes 100       4.90       5.40  
 


Required:
1. Determine the carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule is applied to (a) individual products, (b) product categories, and (c) total inventory.
2. Assuming inventory write-downs are common for Almaden, record any necessary year-end adjustment amount for each of the LCNRV applications in requirement 1.

Required 1 Required 2 Assuming inventory write-downs are common for Almaden, record any necessary year-end adjustment amount for each of the L applications in requirement 1. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 > Record necessary year-end adjustment for individual products. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 explanation Record entry Clear entry View general iournal
Transcribed Image Text:Required 1 Required 2 Assuming inventory write-downs are common for Almaden, record any necessary year-end adjustment amount for each of the L applications in requirement 1. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 > Record necessary year-end adjustment for individual products. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 explanation Record entry Clear entry View general iournal
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