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
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