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e. Inventory The company has the policy of stating all inventory on hand at the lower of cost and net realizable value. The company uses the direct method for any adjustments to inventory. NOTE – on the Statement of Earnings use "Cost of Goods Sold" from the trial balance - do not calculate the cost of goods sold. Trial Balance - Cost of Goods Sold = 3717400 In the Excel spreadsheet, see the tab “"Inventory Detail" to perform any necessary calculations.

e. Inventory The company has the policy of stating all inventory on hand at the lower of cost and net realizable value. The company uses the direct method for any adjustments to inventory. NOTE – on the Statement of Earnings use "Cost of Goods Sold" from the trial balance - do not calculate the cost of goods sold. Trial Balance - Cost of Goods Sold = 3717400 In the Excel spreadsheet, see the tab “"Inventory Detail" to perform any necessary calculations.

FINANCIAL ACCOUNTING
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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Make any adjustment necessary to inventory

Please include all the calculations for my reference. Thanks!

Inventory Items on Hand Item # Description Cost Selling Price Selling costs Market LCM 7% of selling price 32,500.00 32,500.00 32,500.00 14566SA X205 30 HP Machine 13,500.00 145669A X205 30 HP Machine 13,500.00 147502A X205 30 HP Machine 13,500.00 32,500.00 32.500.00 147503A X205 30 HP Machine 13,500.00 147504A X205 30 HP Machine 13,500.00 35,900.00 360010X G350 60 HP Machine 47,900.00 360011X G350 60 HP Machine 35,900.00 47,900.00 360012X G350 60 HP Machine 35,900.00 47,900.00 47,900.00 103,000.00 360013X G350 60 HP Machine 35,900.00 598750w L500 100HP Machine 98,600.00 598751W L500 100HP Machine 98,600.00 103,000.00 598752W L500 100HP Machine 98,600.00 103,000.00 506,900.00
Transcribed Image Text:Inventory Items on Hand Item # Description Cost Selling Price Selling costs Market LCM 7% of selling price 32,500.00 32,500.00 32,500.00 14566SA X205 30 HP Machine 13,500.00 145669A X205 30 HP Machine 13,500.00 147502A X205 30 HP Machine 13,500.00 32,500.00 32.500.00 147503A X205 30 HP Machine 13,500.00 147504A X205 30 HP Machine 13,500.00 35,900.00 360010X G350 60 HP Machine 47,900.00 360011X G350 60 HP Machine 35,900.00 47,900.00 360012X G350 60 HP Machine 35,900.00 47,900.00 47,900.00 103,000.00 360013X G350 60 HP Machine 35,900.00 598750w L500 100HP Machine 98,600.00 598751W L500 100HP Machine 98,600.00 103,000.00 598752W L500 100HP Machine 98,600.00 103,000.00 506,900.00
e. Inventory The company has the policy of stating all inventory on hand at the lower of cost and net realizable value. The company uses the direct method for any adjustments to inventory. NOTE – on the Statement of Earnings use "Cost of Goods Sold" from the trial balance - do not calculate the cost of goods sold. Trial Balance - Cost of Goods Sold= 3717400 In the Excel spreadsheet, see the tab “"Inventory Detail" to perform any necessary calculations.
Transcribed Image Text:e. Inventory The company has the policy of stating all inventory on hand at the lower of cost and net realizable value. The company uses the direct method for any adjustments to inventory. NOTE – on the Statement of Earnings use "Cost of Goods Sold" from the trial balance - do not calculate the cost of goods sold. Trial Balance - Cost of Goods Sold= 3717400 In the Excel spreadsheet, see the tab “"Inventory Detail" to perform any necessary calculations.
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