Exercise 9-6 (Algo) Lower of cost or market [LO9-1]Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows:TotalTotal NetProductTotal CostReplacement Cost$118,10091,00042,80030,200Realizable Value$129,00096,40064,20032,300$107,300117,80053,70054,000101102103104The normal profit is 30% of total cost.Required:1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied toindividual products.2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry.X Answer is complete but not entirely correct.Complete this question by entering your answers in the tabs below.Required 1Required 2Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied toindividual products.InventoryValueReplacementNRVNRV - NPMarketProductTotal Costcost Ș118,100$107,300117,80053,70054,00010296,40064,20032,30091,00042,80030,200103104The normal profit is 30% of total cost.Required:1. Determine the carrying value of inventoryet December 31, 2021, assuming the lower of cost or market (LCM) rule is applied toindividual products.2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry.Assessment Tool iFrameX Answer is complete but not entirely correct.Complete this question by entering your answers in the tabs below.Required 1Required 2Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied toindividual products.ReplacementInventoryValueProductTotal CostNRVNRV - NPMarketcost1012$129,0002$118,100107,300$68,600107,30024107,30010296,40091,000117,80088,880 O91,000 O91,00010364,20042,80053,70034,44042,800 O42,80010432,30030,20054,00054,000 X44,310 O32,300Totals$321,900273,400

Lower of cost or market value states that business entity should record the inventory at whichever…

Exercise 9-6 (Algo) Lower of cost or market [LO9-1] Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows: Total Total Net Product Total Cost Replacement Cost $118,100 91,000 42,800 30,200 Realizable Value $129,000 96,400 64,200 32,300 $107,300 117,800 101 102 103 53,700 104 54,000 The normal profit is 30% of total cost. Required: 1. Determine the carrying value of inventory at December 31, 2021, 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. X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products. Inventory Value Market Replacement cost NRV NRV - NP Product Total Cost

Exercise 9-6 (Algo) Lower of cost or market [LO9-1] Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows: Total Total Net Product Total Cost Replacement Cost $118,100 91,000 42,800 30,200 Realizable Value $129,000 96,400 64,200 32,300 $107,300 117,800 101 102 103 53,700 104 54,000 The normal profit is 30% of total cost. Required: 1. Determine the carrying value of inventory at December 31, 2021, 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. X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products. Inventory Value Market Replacement cost NRV NRV - NP Product Total Cost

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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Required information Problem 8-5 (Algo) Various inventory costing methods [LO8-1, 8-4] [The following information applies to the questions displayed below.] A company began January with 7,000 units of its principal product. The cost of each unit is $9. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18. Totals Sales Units Date of Sale January 5 January 12 January 20 Total 6,000 7,000 13,000 * Includes purchase price and cost of freight. Units 3,000 1,000 4,000 8,000 Purchases Unit Cost* $ 10 11 12,000 units were on hand at the end of the month. Problem 8-5 (Algo) Part 5 Total Cost $ 60,000 77,000 $ 137,000 5. Calculate January's ending inventory and cost of goods sold for the month using Average cost, perpetual system. Note: Round average cost per unit to 4 decimal places. Enter sales with a negative sign.
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0 Required information Problem 9-6 (Algo) Retail inventory method; average cost and conventional (LO9-3, 9-4] [The following information applies to the questions displayed below.) Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2021 are as follows: Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns Cost $86,000 363,000 8,600 6,600 Problem 9-6 (Algo) Part 1 4,631 Retail $176,000 576,000 10,000 15,600 11,600 2,000 7,600 536,000 9,600 The company records sales net of employee discounts. Employee discounts for 2021 totaled $3,600
Exercise 8-27 (Static) Dollar-value LIFO [LO8-8] Mercury Company has only one inventory pool. On December 31, 2024, Mercury adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO method was $200,000. Inventory data are as follows: Year 2025 2026 2027 Ending Inventory at Year- Ending Inventory at Base End Costs Date 12/31/2024 12/31/2025 Required: Compute the inventory at December 31, 2025, 2026, and 2027, using the dollar-value LIFO method. Note: Round "Year end cost index" to 2 decimal places. 12/31/2026 $ 231,000 299,000 300,000 12/31/2027 Year Costs Inventory at Year- End Cost $ 220,000 260,000 250,000 Inventory Layers Converted to Base Year Cost Year-End Cost Index = = Ending Inventory at Base Year Cost Base Base 2025 Base 2025 2026 Base 2025 2026 2027 Inventory Layers Converted to Cost Ending Inventory at Base Year Cost Year-End Cost Index Inventory Layers Converted to Cost Inventory DVL Cost $ $ $ S 0 0 0 0
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! Required information Problem 8-5 (Algo) Various inventory costing methods [LO8-1, 8-4] [The following information applies to the questions displayed below.] A company began January with 8,000 units of its principal product. The cost of each unit is $8. Inventory transactions for the month of January are as follows: Date of Purchase. January 10 January 18 Totals Sales Date of Sale January 5 January 12 January 20 Total * Includes purchase price and cost of freight. Unit's Perpetual Average 6,000 8,000 14,000 Beginning Inventory Sale - January 5 Subtotal Average Cost Purchase - January 10 Subtotal Average Cost Sale - January 12 Subtotal Average Cost Purchase - January 18 Subtotal Average Cost Sale - January 20 Total Units 4,000 2,000 5,000 11,000 11,000 units were on hand at the end of the month. Problem 8-5 (Algo) Part 5 5. Calculate January's ending inventory and cost of goods sold for the month using Average cost, perpetual system. Note: Round average cost per unit to 4 decimal…
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