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a. Determine the value of the inventory for each year using the lower of cost or market rule. 2020 $ 2021 $ 2022 $

a. Determine the value of the inventory for each year using the lower of cost or market rule. 2020 $ 2021 $ 2022 $

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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Ee.110.

 

Instructions Chart of Accounts First Question General Journal Instructions Information about the ending inventories of Charleston Chair Company, who applies the LIFO method, is shown below: Year 2020 2021 2022 First Question Cost $10,000 15,000 20,000 2020 $ $ Current Replacement Cost 2022 $ $11,500 13,000 18,600 Selling Price $12,000 14,000 24,000 Required: a. Determine the value of the inventory for each year using the lower of cost or market rule. b. Assuming that Charleston Chair Company maintains a periodic inventory system, prepare journal entries for 2022 to record the reduction of the inventory to market value using: 1. the direct method 2. the allowance method Cost of Completion $1,000 1,500 2,200 Normal a. Determine the value of the inventory for each year using the lower of cost or market rule. E 2021 Profit Margin $1,100 1,250 2,900
Transcribed Image Text:Instructions Chart of Accounts First Question General Journal Instructions Information about the ending inventories of Charleston Chair Company, who applies the LIFO method, is shown below: Year 2020 2021 2022 First Question Cost $10,000 15,000 20,000 2020 $ $ Current Replacement Cost 2022 $ $11,500 13,000 18,600 Selling Price $12,000 14,000 24,000 Required: a. Determine the value of the inventory for each year using the lower of cost or market rule. b. Assuming that Charleston Chair Company maintains a periodic inventory system, prepare journal entries for 2022 to record the reduction of the inventory to market value using: 1. the direct method 2. the allowance method Cost of Completion $1,000 1,500 2,200 Normal a. Determine the value of the inventory for each year using the lower of cost or market rule. E 2021 Profit Margin $1,100 1,250 2,900
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