Additional data:The disposal cost of each inventory A, B, C, D, and E amounted to 10% of the inventorycost.The normal (gross) profit margin of each inventory A, B, C, D, and E was 100% of theinventory cost.Required:Determine the selling price per unit of each inventory A, B, C, D, and E Complete the last four columns in the table above using the lower-of-cost-or-market rule Determine the total cost and final inventory value. Prepare the necessary journal entry at 12/31/20 to reflect the loss due to market decline in value of inventory At 12/31/20, your company, a retailer's inventory data was provided in the table below:Inventory Number Cost/unitReplacementSellingCeiling Floor MarketFinalof Unitscost/unitprice/unitinventoryvalueA500$1.0$0.80?????200$1.5$1.40????300$1.5$1.50?????D100$2.0$2.20????E100$2.5$4.90????

Name: Additional data:The disposal cost of each inventory A, B, C, D, and E
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Description: Additional data:The disposal cost of each inventory A, B, C, D, and E amounted to 10% of the inventorycost.The normal (gross) profit margin of each inventory A, B, C, D, and E was 100% of theinventory cost.Required:Determine the selling price per uni

Introduction: The term inventory refers to both the raw materials utilized in production and the…

Answered: Additional data: The disposal cost of…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter14: Adjustments For A Merchandising Business

Section: Chapter Questions

Problem 7SEA: DETERMINING THE BEGINNING AND ENDING INVENTORY FROM A PARTIAL SPREADSHEET: PERIODIC INVENTORY SYSTEM...

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Additional data:

The disposal cost of each inventory A, B, C, D, and E amounted to 10% of the inventory

cost.
The normal (gross) profit margin of each inventory A, B, C, D, and E was 100% of the

inventory cost.

Required:

Determine the selling price per unit of each inventory A, B, C, D, and E
Complete the last four columns in the table above using the lower-of-cost-or-market rule
Determine the total cost and final inventory value. Prepare the necessary journal entry at 12/31/20 to reflect the loss due to market decline in value of inventory

At 12/31/20, your company, a retailer's inventory data was provided in the table below:
Inventory Number Cost/unit
Replacement
Selling
Ceiling Floor Market
Final
of Units
cost/unit
price/unit
inventory
value
A
500
$1.0
$0.80
?
?
?
?
?
200
$1.5
$1.40
?
?
?
?
300
$1.5
$1.50
?
?
?
?
?
D
100
$2.0
$2.20
?
?
?
?
E
100
$2.5
$4.90
?
?
?
?

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