Blossom Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company's inventory records as of December 31, 2025. Item Quantity Unit Cost $9.08 A B C D E Item A Item B 1,700 Show Transcribed Text Item C 1,400 1,600 Item D 1,600 Item E 2,000 $ $ $ $ 9.92 Lower-of-Cost-or-Market (Per unit basis) $ 6.78 Show Transcribed Text 4.60 7.74 The Loss method: Replacement Cost/Unit $10.16 9.56 Account Titles and Explanation Cost of Goods sold Method: 6.53 5.08 7.62 Estimated Selling Completion & Disposal Price/Unit Cost/Unit $12.71 Greg Forda is an accounting clerk in the accounting department of Blossom Co., and he cannot understand why the market value keeps changing from replacement cost to net realizable value to something that he cannot even figure out. Greg is very confused, and he is the one who records inventory purchases and calculates ending inventory. You are the manager of the department and an accountant. 11.37 8.71 7.62 Calculate the lower-of-cost-or-market using the individual-item approach. (Round answers to 2 decimal places, e.g. 78.73.) 8.11 C $1.82 1.09 1.39 Debit 0.97 0.85 Normal Profit Margin/Unit $2.18 1.45 0.73 Credit 1.82 Show the journal entry he will need to make in order to write down the ending inventory from cost to market. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) 1.21
Blossom Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company's inventory records as of December 31, 2025. Item Quantity Unit Cost $9.08 A B C D E Item A Item B 1,700 Show Transcribed Text Item C 1,400 1,600 Item D 1,600 Item E 2,000 $ $ $ $ 9.92 Lower-of-Cost-or-Market (Per unit basis) $ 6.78 Show Transcribed Text 4.60 7.74 The Loss method: Replacement Cost/Unit $10.16 9.56 Account Titles and Explanation Cost of Goods sold Method: 6.53 5.08 7.62 Estimated Selling Completion & Disposal Price/Unit Cost/Unit $12.71 Greg Forda is an accounting clerk in the accounting department of Blossom Co., and he cannot understand why the market value keeps changing from replacement cost to net realizable value to something that he cannot even figure out. Greg is very confused, and he is the one who records inventory purchases and calculates ending inventory. You are the manager of the department and an accountant. 11.37 8.71 7.62 Calculate the lower-of-cost-or-market using the individual-item approach. (Round answers to 2 decimal places, e.g. 78.73.) 8.11 C $1.82 1.09 1.39 Debit 0.97 0.85 Normal Profit Margin/Unit $2.18 1.45 0.73 Credit 1.82 Show the journal entry he will need to make in order to write down the ending inventory from cost to market. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) 1.21
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Oo.100.
Subject :- Account
![Blossom Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from
the company's inventory records as of December 31, 2025.
Item Quantity
A
1,700
1,400
1,600
B
с
D
E
Item A
Show Transcribed Text
Item B
1,600
Item C
2,000
Item D
Item E
$
$
Unit Cost
$
$
$
$9.08
9.92
Lower-of-Cost-or-Market
(Per unit basis)
Show Transcribed Text
6.78
4.60
7.74
The Loss method:
Replacement
Cost/Unit
$10.16
Account Titles and Explanation
9.56
Cost of Goods sold Method:
6.53
Greg Forda is an accounting clerk in the accounting department of Blossom Co., and he cannot understand why the market value
keeps changing from replacement cost to net realizable value to something that he cannot even figure out. Greg is very confused, and
he is the one who records inventory purchases and calculates ending inventory. You are the manager of the department and an
accountant.
5.08
7.62
Estimated Selling Completion & Disposal
Price/Unit
Cost/Unit
Calculate the lower-of-cost-or-market using the individual-item approach. (Round answers to 2 decimal places, e.g. 78.73.)
$12.71
11.37
8.71
7.62
8.11
c
$1.82
1.09
1.39
0.97
Debit
0.85
Normal Profit
Margin/Unit
$2.18
1.45
Show the journal entry he will need to make in order to write down the ending inventory from cost to market. (Credit account titles
are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles
and enter O for the amounts.)
Credit
0.73
1.82
||||
[|]]
1.21](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5a79f5fd-2bdd-484b-9c0d-a83d48b55247%2F90f5b56e-840a-426c-b2cf-ba9c84c51f2e%2Fozp1fhb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Blossom Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from
the company's inventory records as of December 31, 2025.
Item Quantity
A
1,700
1,400
1,600
B
с
D
E
Item A
Show Transcribed Text
Item B
1,600
Item C
2,000
Item D
Item E
$
$
Unit Cost
$
$
$
$9.08
9.92
Lower-of-Cost-or-Market
(Per unit basis)
Show Transcribed Text
6.78
4.60
7.74
The Loss method:
Replacement
Cost/Unit
$10.16
Account Titles and Explanation
9.56
Cost of Goods sold Method:
6.53
Greg Forda is an accounting clerk in the accounting department of Blossom Co., and he cannot understand why the market value
keeps changing from replacement cost to net realizable value to something that he cannot even figure out. Greg is very confused, and
he is the one who records inventory purchases and calculates ending inventory. You are the manager of the department and an
accountant.
5.08
7.62
Estimated Selling Completion & Disposal
Price/Unit
Cost/Unit
Calculate the lower-of-cost-or-market using the individual-item approach. (Round answers to 2 decimal places, e.g. 78.73.)
$12.71
11.37
8.71
7.62
8.11
c
$1.82
1.09
1.39
0.97
Debit
0.85
Normal Profit
Margin/Unit
$2.18
1.45
Show the journal entry he will need to make in order to write down the ending inventory from cost to market. (Credit account titles
are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles
and enter O for the amounts.)
Credit
0.73
1.82
||||
[|]]
1.21
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