Tatum Company has four products in its inventory. Information about ending inventory is as follows:ProductTotal CostTotal Net Realizable Value101$ 146,000$ 113,000102108,000123,00010373,00063,00010443,00063,000Required:Determine the carrying value of ending inventory assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products.Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry. Determine the carrying value of ending inventory assuming the lower of cost or net realizable value (LCNRV) rule is applied toindividual products.ProductCostNRV101$146,000 $113,000102108,000123,00010373,00063,00010443,00063,000$370,000InventoryValue< PreviousRequired 2 > Journal entry worksheet1Record any necessary year-end adjusting entry assuming that inventory write-downs are common for Tatum Company.Note: Enter debits before credits.S.No/Date1Account TitleDebitCreditsave masterclearView general journal

The lower of cost or net realizable value (LCNRV) rule states that inventory should be recorded at…

Determine the carrying value of ending inventory assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. Product Cost NRV 101 $ 146,000 $ 113,000 102 108,000 123,000 103 73,000 63,000 104 43,000 63,000 $ 370,000 Inventory Value < Previous Required 2 > Journal entry worksheet 1 Record any necessary year-end adjusting entry assuming that inventory write- downs are common for Tatum Company. Note: Enter debits before credits. S.No/Date 1 Account Title Debit Credit save master clear View general journal

Determine the carrying value of ending inventory assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. Product Cost NRV 101 $ 146,000 $ 113,000 102 108,000 123,000 103 73,000 63,000 104 43,000 63,000 $ 370,000 Inventory Value < Previous Required 2 > Journal entry worksheet 1 Record any necessary year-end adjusting entry assuming that inventory write- downs are common for Tatum Company. Note: Enter debits before credits. S.No/Date 1 Account Title Debit Credit save master clear View general journal

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 10PB: Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for B76 Company,...

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Product	Total Cost	Total Net Realizable Value
101	$ 146,000	$ 113,000
102	108,000	123,000
103	73,000	63,000
104	43,000	63,000

Required:

Determine the carrying value of ending inventory assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products.
Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry.

Determine the carrying value of ending inventory assuming the lower of cost or net realizable value (LCNRV) rule is applied to
individual products.
Product
Cost
NRV
101
$
146,000 $
113,000
102
108,000
123,000
103
73,000
63,000
104
43,000
63,000
$
370,000
Inventory
Value
< Previous
Required 2 >

Journal entry worksheet
1
Record any necessary year-end adjusting entry assuming that inventory write-
downs are common for Tatum Company.
Note: Enter debits before credits.
S.No/Date
1
Account Title
Debit
Credit
save master
clear
View general journal

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6