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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 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 >
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
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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