Exercise 5-10A (Algo) Lower-of-cost-or-market rule: perpetual system LO 5-2 The following information pertains to Hagen Metal Works' ending inventory for the current year. Unit Market Value Item Quantity Unit Cost C 120 D 110 42 20 K M Required a. Determine the value of the ending inventory using the lower-of-cost-or-market rule applied to (1) each individual Inventory Item and (2) the Inventory in aggregate. b. Prepare any necessary journal entries, assuming the decline in value is immaterial, using the (1) Individual method and (2) aggregate method. Hagen Metal Works uses the perpetual Inventory system. $11 13 9 6 Complete this question by entering your answers in the tabs below. Required Required B A Prepare any necessary journal entries, assuming the decline in value is immaterial, using the (1) individual method and (2) aggregate method. Hagen Metal Works uses the perpetual inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show less View transaction list $9 11 10 11 1 Journal entry worksheet 2 Record entry for cost of goods sold using individual item method. Event 1 Note: Enter debits before credits. General Journal Record entry Clear entry < Required A Debit Credit View general journal Required B >
Exercise 5-10A (Algo) Lower-of-cost-or-market rule: perpetual system LO 5-2 The following information pertains to Hagen Metal Works' ending inventory for the current year. Unit Market Value Item Quantity Unit Cost C 120 D 110 42 20 K M Required a. Determine the value of the ending inventory using the lower-of-cost-or-market rule applied to (1) each individual Inventory Item and (2) the Inventory in aggregate. b. Prepare any necessary journal entries, assuming the decline in value is immaterial, using the (1) Individual method and (2) aggregate method. Hagen Metal Works uses the perpetual Inventory system. $11 13 9 6 Complete this question by entering your answers in the tabs below. Required Required B A Prepare any necessary journal entries, assuming the decline in value is immaterial, using the (1) individual method and (2) aggregate method. Hagen Metal Works uses the perpetual inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show less View transaction list $9 11 10 11 1 Journal entry worksheet 2 Record entry for cost of goods sold using individual item method. Event 1 Note: Enter debits before credits. General Journal Record entry Clear entry < Required A Debit Credit View general journal Required B >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Exercise 5-10A (Algo) Lower-of-cost-or-market rule: perpetual system LO 5-2
The following information pertains to Hagen Metal Works' ending inventory for the current year.
Unit
Market
Value
Item Quantity Unit Cost
C
120
D
110
42
20
K
M
Required
a. Determine the value of the ending inventory using the lower-of-cost-or-market rule applied to (1) each individual
Inventory Item and (2) the Inventory in aggregate.
b. Prepare any necessary journal entries, assuming the decline in value is immaterial, using the (1) Individual method and
(2) aggregate method. Hagen Metal Works uses the perpetual Inventory system.
$11
13
9
6
Complete this question by entering your answers in the tabs below.
Required Required
B
A
Prepare any necessary journal entries, assuming the decline in value is immaterial, using the (1)
individual method and (2) aggregate method. Hagen Metal Works uses the perpetual inventory
system. (If no entry is required for a transaction/event, select "No journal entry required" in the
first account field.)
Show less
View transaction list
$9
11
10
11
1
Journal entry worksheet
2
Record entry for cost of goods sold using individual item
method.
Event
1
Note: Enter debits before credits.
General Journal
Record entry
Clear entry
< Required A
Debit
Credit
View general journal
Required B >
Transcribed Image Text:Exercise 5-10A (Algo) Lower-of-cost-or-market rule: perpetual system LO 5-2
The following information pertains to Hagen Metal Works' ending Inventory for the current year.
Unit
Market
Value
Item Quantity Unit Cost
с
120
D
110
K
42
M
20
Required
$11
13
9
6
$9
11
a. Determine the value of the ending inventory using the lower-of-cost-or-market rule applied to (1) each individual
Inventory Item and (2) the inventory In aggregate.
b. Prepare any necessary journal entries, assuming the decline in value is immaterial, using the (1) Individual method and
(2) aggregate method. Hagen Metal Works uses the perpetual Inventory system.
Individual item
method
Aggregate method
10
11
Complete this question by entering your answers in the tabs below.
Required Required
A
B
Determine the value of the ending inventory using the lower-of-cost-or-market rule applied
to (1) each individual inventory item and (2) the inventory in aggregate.
Ending
Inventory
< Required A
Required B >
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