Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2021 year-end inventory is as follows: Net Inventory, Per Unit Realizable By Product Category Quantity Cost Value Tools: Hammers 120 $4.30 $4.80 Saws 130 9.30 8.30 Screwdrivers 230 1.30 1.90 Paint products: 1-gallon cans 450 5.30 4.30 Paint brushes 120 3.30 3.80 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. Complete this question by entering your answers in the tabs below. Required 1. Lower of cost and NRV Net Realizable By individual By product By Total Product Cost Value Products Categories Inventory Tools: Hammers _______ ____________ ____________ Saws ________ ____________ ____________ Screwdrivers ________ ____________ _____________ Totals tools $ 0 $ 0 ____________ Paint products: 1-gallon cans _________ ___________ ____________ Paint brushes _________ ___________ ____________ Total paint $ 0 $ 0 ____________ Total $ 0 $ 0 $ 0 ____________ Required 2: Journal entry worksheet Record necessary year-end adjustment for individual products. Record necessary year-end adjustment for product categories. Record necessary year-end adjustment for total inventory. Transaction General Journal Debit Credit __________ _________________________ _________ ________ __________ _________________________ __________ ________ __________ __________________________ __________ ________ __________ __________________________ __________ ________ __________ __________________________ __________ ________ __________ __________________________ __________ ________
Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2021 year-end inventory is as follows:
Net
Inventory, Per Unit Realizable
By Product Category Quantity Cost Value
Tools:
Hammers 120 $4.30 $4.80
Saws 130 9.30 8.30
Screwdrivers 230 1.30 1.90
Paint products:
1-gallon cans 450 5.30 4.30
Paint brushes 120 3.30 3.80
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.
Complete this question by entering your answers in the tabs below.
Required 1. Lower of cost and NRV
Net Realizable By individual By product By Total
Product Cost Value Products Categories Inventory
Tools:
Hammers _______ ____________ ____________
Saws ________ ____________ ____________
Screwdrivers ________ ____________ _____________
Totals tools $ 0 $ 0 ____________
Paint products:
1-gallon cans _________ ___________ ____________
Paint brushes _________ ___________ ____________
Total paint $ 0 $ 0 ____________
Total $ 0 $ 0 $ 0 ____________
Required 2:
- Record necessary year-end adjustment for individual products.
- Record necessary year-end adjustment for product categories.
- Record necessary year-end adjustment for total inventory.
Transaction General Journal Debit Credit
__________ _________________________ _________ ________
__________ _________________________ __________ ________
__________ __________________________ __________ ________
__________ __________________________ __________ ________
__________ __________________________ __________ ________
__________ __________________________ __________ ________
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