Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2021 year-end inventory is as follows: Q8 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
Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2021 year-end inventory is as follows: Q8 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2021 year-end inventory is as follows:
Q8
| 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.
Transcribed Image Text: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 journal
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