Exercise 9-6 (Algo) Lower of cost or market [LO9-1] Tatum Company has four products in its inventory. Information about ending inventory is as follows: Product Total Cost 101 $ 152,000 Total Replacement Cost $ 138,800 Total Net Realizable Value $ 126,200 102 113,000 106,700 138,100 103 75,300 50,200 104 38,300 35,700 63,400 64,100 The normal profit is 35% of total cost. Required: 1. Determine the carrying value of inventory assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the carrying value of inventory assuming the lower of cost or market (LCM) rule is applied to individual products. Product Total Cost Replacement cost NRV 101 $ 152,000 138,800 $ 102 113,000 106,700 126,200 138,100 103 75,300 50,200 63,400 104 38,300 35,700 64,100 Totals $ 378,600 NRV minus NP Market Inventory Value Required 1 Required 2 > 0

Exercise 9-6 (Algo) Lower of cost or market [LO9-1] Tatum Company has four products in its inventory. Information about ending inventory is as follows: Product Total Cost 101 $ 152,000 Total Replacement Cost $ 138,800 Total Net Realizable Value $ 126,200 102 113,000 106,700 138,100 103 75,300 50,200 104 38,300 35,700 63,400 64,100 The normal profit is 35% of total cost. Required: 1. Determine the carrying value of inventory assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the carrying value of inventory assuming the lower of cost or market (LCM) rule is applied to individual products. Product Total Cost Replacement cost NRV 101 $ 152,000 138,800 $ 102 113,000 106,700 126,200 138,100 103 75,300 50,200 63,400 104 38,300 35,700 64,100 Totals $ 378,600 NRV minus NP Market Inventory Value Required 1 Required 2 > 0

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 1MC: Sienna Company uses the FIFO cost flow assumption. Sierra has inventory with a selling price of 100,...

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Vishnu
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TB MC Qu. 10-72 Konan, Inc. needs to determine... Konan, Inc. needs to determine its inventory value. The following information pertains to the individual products in ending inventory: Replacement Selling Cost of Cost Price $50 $38 40 60 24 30 Product L-19 M-23 N-05 Multiple Choice O Assuming Konan uses the FIFO method for costing its inventory, the writedown of inventory value for Product N-05 is о O O $6. $2 $8. Cost $40 52 20 $0. Completion $2 10 2 Normal Profit $11 8 6
0 Required information. Problem 5-1A (Algo) Perpetual: Alternative cost flows LO P3 [The following information applies to the questions displayed below.) Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date March 11 March 5 March 9 March 18. March 25 March 29 Gross Margin Activities Beginning inventory Purchase Sales Purchase Purchase Sales Totals Sales Less: Cost of goods sold Gross profit FIFO Units Acquired at Cost 160 units @ $52.20 per unit 255 units @ $57.20 per unit LIFO 115 units@ $62.20 per unit 210 units @ $64.20 per unit 740 units Problem 5-1A (Algo) Part 4 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 95 units from beginning inventory, 225 units from the March 5 purchase, 75 units from the March 18 purchase, and 115 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and…
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Problem 8. * Alfred Company measured inventory at the lower of cost and net realizable value. BTS TWICE 240,000 188,000 360,000 250,000 48,000 50,000 208,000 168,000 25% 25% Historical cost Selling Price Est. cost to complete Replacement cost Profit margin What is the measurement of the inventory? Your answer EXO 300,000 360,000 68,000 318,000 10%
toring Enabled Ex A company has the following products in its ending inventory Compute lower of cost or market for inventory applied separately to each product and then calculate the total lower of cost or market. What is the total lower of cost or market? Product Product A Product 3 Product C Mugle Choice Quantity 10 $31.660 OSUN 15 20 Cost per Unit $708 $508 $658 Market per Unit $678 $548 5683 4
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I calculated required 1 correctly but need help with the calculations for “required 2”
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