E7-13 (Algo) Reporting Inventory at Lower of Cost or Market/Net Realizable Value [LO 7-4] Peterson Furniture Designs is preparing the annual financial statements dated December 31. Ending inventory information about the five major items stocked for regular sale follows: Required: 1-a. Complete the table column "Write-Down per Item" and then sum the final column. 1-b. Compute the amount of the total write-down when the LCM/NRV rule is applied to each item. 2. Prepare the journal entry Peterson Furniture Designs would record on December 31 to write down its inventory to LCM/NRV. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Complete the table column "Write-Down per Item" and then sum the final column. Unit Cost Item (FIFO) NRV per Item Write-down per Item Quantity on Hand Total Write- down Alligator Armoires $ 60 $ 52 10 Bear Bureaus 53 53 85 Cougar Credenzas 21 23 75 Dingo Cribs 20 20 90 Elephant Dressers 39 36 70 < Req 1A Req 1B >
E7-13 (Algo) Reporting Inventory at Lower of Cost or Market/Net Realizable Value [LO 7-4] Peterson Furniture Designs is preparing the annual financial statements dated December 31. Ending inventory information about the five major items stocked for regular sale follows: Required: 1-a. Complete the table column "Write-Down per Item" and then sum the final column. 1-b. Compute the amount of the total write-down when the LCM/NRV rule is applied to each item. 2. Prepare the journal entry Peterson Furniture Designs would record on December 31 to write down its inventory to LCM/NRV. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Complete the table column "Write-Down per Item" and then sum the final column. Unit Cost Item (FIFO) NRV per Item Write-down per Item Quantity on Hand Total Write- down Alligator Armoires $ 60 $ 52 10 Bear Bureaus 53 53 85 Cougar Credenzas 21 23 75 Dingo Cribs 20 20 90 Elephant Dressers 39 36 70 < Req 1A Req 1B >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![E7-13 (Algo) Reporting Inventory at Lower of Cost or Market/Net Realizable Value [LO 7-4]
Peterson Furniture Designs is preparing the annual financial statements dated December 31. Ending inventory information about the
five major items stocked for regular sale follows:
Required:
1-a. Complete the table column "Write-Down per Item" and then sum the final column.
1-b. Compute the amount of the total write-down when the LCM/NRV rule is applied to each item.
2. Prepare the journal entry Peterson Furniture Designs would record on December 31 to write down its inventory to LCM/NRV.
Complete this question by entering your answers in the tabs below.
Req 1A
Req 1B
Req 2
Complete the table column "Write-Down per Item" and then sum the final column.
Item
Unit Cost
(FIFO)
NRV per
Item
Write-down
per Item
Quantity on
Hand
Total Write-
down
Alligator Armoires
$
60 $
52
10
Bear Bureaus
53
53
85
Cougar Credenzas
21
23
75
Dingo Cribs
20
20
90
Elephant Dressers
39
36
70
< Req 1A
Req 1B
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F045f60be-3920-49f7-9446-829a84c882be%2F1de1abe7-8f41-4911-be25-c1eb977d8969%2Fs6zzzb_processed.png&w=3840&q=75)
Transcribed Image Text:E7-13 (Algo) Reporting Inventory at Lower of Cost or Market/Net Realizable Value [LO 7-4]
Peterson Furniture Designs is preparing the annual financial statements dated December 31. Ending inventory information about the
five major items stocked for regular sale follows:
Required:
1-a. Complete the table column "Write-Down per Item" and then sum the final column.
1-b. Compute the amount of the total write-down when the LCM/NRV rule is applied to each item.
2. Prepare the journal entry Peterson Furniture Designs would record on December 31 to write down its inventory to LCM/NRV.
Complete this question by entering your answers in the tabs below.
Req 1A
Req 1B
Req 2
Complete the table column "Write-Down per Item" and then sum the final column.
Item
Unit Cost
(FIFO)
NRV per
Item
Write-down
per Item
Quantity on
Hand
Total Write-
down
Alligator Armoires
$
60 $
52
10
Bear Bureaus
53
53
85
Cougar Credenzas
21
23
75
Dingo Cribs
20
20
90
Elephant Dressers
39
36
70
< Req 1A
Req 1B
>
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