Required 1 Required 2Assuming inventory write-downs are common for Almaden, record any necessary year-end adjustment amount for each of the LCNRVapplications in requirement 1. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journalentry required" in the first account field.)View transaction listJournal entry worksheet<1 2 3Record necessary year-end adjustment for individual products.Note: Enter debits before credits.Transaction1explanationRecord entryGeneral JournalClear entry< Required 1DebitCreditView general journalRequired 2 > Problem 9-2 (Algo) Lower of cost or net realizable value; by product, category, and total Inventory [LO9-1]Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2021 year-end inventoryis as follows:Inventory,by Product CategoryTools:HammersSawsScrewdriversPaint products:1-gallon cansPaint brushesTools:ProductHammersSawsScrewdriversTotal toolsPaint products:1-gallon cansPaint brushesTotal paintTotalQuantity110140240$440110Required: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 theLCNRV applications in requirement 1.$$Complete this question by entering your answers in the tabs below.CostRequired 1 Required 2Determine the carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule isapplied to (a) individual products, (b) product categories, and (c) total inventory.Lower of cost and NRVByProductCategoriesPer UnitCost$4.409.401.405.403.40o $0 $0 $NetRealizableValue$4.908.402.00Net Realizable By IndividualValueProducts04.403.9000 $< Required 10 $0By TotalInventoryRequired 2 >

Solution: As per GAAPs, inventories are valued at year end at cost or net realizable value whichever…

Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2021 year-end inventory is as follows: Inventory, by Product Category Tools: Hammers Saws Screwdrivers Paint products: 1-gallon cans Paint brushes Quantity Cost 110 140 240 Per Unit 440 110 $4.40 9.40 1.40 5.40 3.40 Net Realizable Value $4.90 8.40 2.00 4.40 3.90 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: Inventory, by Product Category Tools: Hammers Saws Screwdrivers Paint products: 1-gallon cans Paint brushes Quantity Cost 110 140 240 Per Unit 440 110 $4.40 9.40 1.40 5.40 3.40 Net Realizable Value $4.90 8.40 2.00 4.40 3.90 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.

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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