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 110 300 400 600 110 Per Unit Cost $ 6.00 11.00 3.00 7.09 5.00 Net Realizable Value $ 6.50 10.00 3.60 6.00 5.50 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 110 300 400 600 110 Per Unit Cost $ 6.00 11.00 3.00 7.09 5.00 Net Realizable Value $ 6.50 10.00 3.60 6.00 5.50 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.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 12E: Alternative Inventory Methods Park Companys perpetual inventory records indicate the following...
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![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
Required 1
Tools:
Product
Hammers
Saws
Quantity
110
300
400
Screwdrivers
Total tools
Paint products:
600
110
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.
1-gallon cans
Paint brushes
Total paint
Total
Per Unit
Cost
Complete this question by entering your answers in the tabs below.
Cost
$ 6.00
11.00
3.00
Required 2
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.
7.00
5.08
Net
Realizable
Value
$ 6.50
10.00
3.60
6.00
5.50
< Required 1
Lower of cost and NRV
By
Product
Categories
Net Realizable By Individual
Value
Products
By Total
Inventory
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05c29da8-5e07-472c-a295-a56e55cdcfad%2Fedb44f8b-04b8-4329-a292-41c56dce919f%2Fwogkl2_processed.png&w=3840&q=75)
Transcribed Image Text: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
Required 1
Tools:
Product
Hammers
Saws
Quantity
110
300
400
Screwdrivers
Total tools
Paint products:
600
110
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.
1-gallon cans
Paint brushes
Total paint
Total
Per Unit
Cost
Complete this question by entering your answers in the tabs below.
Cost
$ 6.00
11.00
3.00
Required 2
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.
7.00
5.08
Net
Realizable
Value
$ 6.50
10.00
3.60
6.00
5.50
< Required 1
Lower of cost and NRV
By
Product
Categories
Net Realizable By Individual
Value
Products
By Total
Inventory
Required 2 >
![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
View transaction list
1 2 3
Quantity
110
300
400
Journal entry worksheet
<
680
110
Note: Enter debits before credits.
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.
Transaction
1
Per Unit
Cost
Complete this question by entering your answers in the tabs below.
explanation
$6.00
11.00
3.00
Required 1 Required 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. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal
entry required" in the first account field.)
Record entry
7.00
5.08
Net
Realizable
Value
Record necessary year-end adjustment for individual products.
$ 6.50
10.00
3.60
6.00
5.50
General Journal
Clear entry
Debit
Credit
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05c29da8-5e07-472c-a295-a56e55cdcfad%2Fedb44f8b-04b8-4329-a292-41c56dce919f%2Fdulxlxj_processed.png&w=3840&q=75)
Transcribed Image Text: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
View transaction list
1 2 3
Quantity
110
300
400
Journal entry worksheet
<
680
110
Note: Enter debits before credits.
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.
Transaction
1
Per Unit
Cost
Complete this question by entering your answers in the tabs below.
explanation
$6.00
11.00
3.00
Required 1 Required 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. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal
entry required" in the first account field.)
Record entry
7.00
5.08
Net
Realizable
Value
Record necessary year-end adjustment for individual products.
$ 6.50
10.00
3.60
6.00
5.50
General Journal
Clear entry
Debit
Credit
View general journal
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