A company has four types of products in its inventory as shown below: Product Quantity Cost Net Realizable Value A 15 $ 7 $ 10 B 10 18 12 C 20 8 6 D 15 11 15 When accounting for the lower of cost or net realizable value by individual items, the year-end adjustment to write down inventory would be:

A company has four types of products in its inventory as shown below: Product Quantity Cost Net Realizable Value A 15 $ 7 $ 10 B 10 18 12 C 20 8 6 D 15 11 15 When accounting for the lower of cost or net realizable value by individual items, the year-end adjustment to write down inventory would be:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Product	Quantity	Cost	Net Realizable Value
A	15	$ 7	$ 10
B	10	18	12
C	20	8	6
D	15	11	15

Similar questions

Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for first-in, first-out (FIFO). Numberof Units Unit Cost Sales Beginning Inventory 260 $140 Sold 160 $180 Purchased 510 143 Sold 400 182 Purchased 420 150 Sold 370 184 Ending Inventory 260 FIFO (perpetual) Inventory Cost of Goods Purchased Cost of Goods Sold Cost of Inventory Remaining Numberof Units Unit Cost Total Cost Numberof Units Unit Cost Total Cost Numberof Units Unit Cost Total Cost Beginning fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Sale fill in the blank 4 $fill in the blank 5 $fill in the blank 6 fill in the blank 7 fill in the blank 8 fill in the blank 9 Purchase fill in the blank 10 $fill in the…
If Inventory on 1.1.2020 was OMR 240,000, Inventory on 31.12.2020 was OMR 320,000 and cost of goods sold was OMR 900,000, the Inventory conversion period will be: a. 113.55 days b. 129.78 days c. None of these d. 97.33 days
UMET's Stores had the following inventory transactions in 2020: Transaction Units Cost per unit 1/1 Balance 50 $6 2/14 Sale 25 5/23 Purchase 100 8 8/21 Sale 50 11/5 Purchase 25 12 11/18 Sale 95 Required: Compute tge cost of goods sold and the ending inventory using the periodic inventory system for each of the following cost flow assumptions: a. FIFO b. LIFO c. Weighted average
Halicon Ltd. applies the lower of cost or NRV valuation to inventory. The company's inventory at the end of the year is as follows Required: Determine the amount of any adjustment that is required to inventory under each of the following valuation methods: (Enter all amounts as positive values.) By individual type of item. By class of inventory.
Beginning inventory, purchases, and sales of a commodity are presented below: Inventory: July 1 15 units at $55 Sold July 6 10 units at $57 Purchased July 9 30 units at $60 Sold July 12 30 units at $58 Purchased July 18 50 units at $65 Sold July 22 40 units at $59 Assuming that the perpetual inventory system is used, determine the Total Cost of the Merchandise Sold and the Total Cost of the Ending Inventory using a) FIFO b) LIFO c) Weighted Average
Cinco Company determined the following information for an inventory at year-end: P2,000,000 1,400,000 1,800,000 1,700,000 1,900,000 Historical cost Current replacement cost Net realizable value Net realizable value less a normal profit margin Fair value What amount should the inventory be reported at yearend? B. P1,700,000 C. P1,800,000 A. P1,400,000 D. P 1,900,000
The inventory records for Radford Company reflected the following Beginning inventory on May 1 First purchase on May 7 Second purchase on May 17 Third purchase on May 23 1,200 units @ $4.00 1,300 units @ $4.20 1,500 units @ $4.30 1,100 units@ $4.40 Sale on May 31 3,900 units @ $5.90 What is the amount of gross margin assuming the weighted average cost flow method is used? (Round your intermediate calculations to 2 dec Multiple Choice $10.920 $17160 $6,513 O $5.850
How much is the total inventory value at December 31, 2019?
Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost, calculate the average inventory (in $) and inventory turnover for the following. If the actual turnover is less than the published rate, calculate the target average inventory (in $) necessary to come up to industry standards. If the actual turnover is greater than the published rate, enter "above" for target average inventory. Round inventories to the nearest dollar and inventory turnovers to the nearest tenth. Net Sales $4,560,000 Cost of Goods Sold Beginning Ending Inventory Inventory $858,000 $654,300 Average Inventory $ Inventory Published Turnover Rate 8.2 Target Average Inventory
Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost, calculate the average inventory (in $) and inventory turnover for the following. If the actual turnover is less than the published rate, calculate the target average inventory necessary to come up to industry standards. If the actual turnover is greater than the published rate, enter "above" for target average inventory. Round inventories to the nearest dollar and inventory turnovers to the nearest tenth Net Sales $560,000 Cost of Goods Sold Beginning Ending Inventory Inventory $137,250 $75,200 $ Average Inventory Inventory Turnover Published Rate 4.8 $ Target Average Inventory
Determine the ending inventory amount by applying the lower of cost or market value to a. Each inventory item of inventoryb. Total inventory The following data refer to Froning Company’s ending inventoryItem Code, Quantity, Unit Cost, Unit MarketLXC 60 $45 $48KMT 210 $38 $34MOR 300 $22 $20NES 100 $27 $32