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 Replacement Cost $119,900 92,300 43,499 30,700 Product Total Cost 101 182 103 184 The normal profit is 25% 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. $131,000 97,800 65,100 32,800 Complete this question by entering your answers in the tabs below. Product 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. 101 102 103 104 Totals Total Cost S 131,000 $ 97,800 $ Total Net Realizable Value $108,900 119,500 54,500 54,900 Replacement cost 65,100 32,800 326,700 119,900 $ 92,300 43,400 30,700 NRV 108,900 119.500 54,500 54,900 Required 1 NRV - NP Market Inventory Value Required 2 >

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 Replacement Cost $119,900 92,300 43,499 30,700 Product Total Cost 101 182 103 184 The normal profit is 25% 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. $131,000 97,800 65,100 32,800 Complete this question by entering your answers in the tabs below. Product 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. 101 102 103 104 Totals Total Cost S 131,000 $ 97,800 $ Total Net Realizable Value $108,900 119,500 54,500 54,900 Replacement cost 65,100 32,800 326,700 119,900 $ 92,300 43,400 30,700 NRV 108,900 119.500 54,500 54,900 Required 1 NRV - NP Market Inventory Value Required 2 >

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 37BE: Lower of Cost or Market Garcia Company uses FIFO, and its inventory at the end of the year was...

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Dollar-Value LIFO A company adopted the LIFO method when its inventory was 1,800. One year later its ending inventory was 2,100, and costs had increased 5% during the year. Required: What is the ending inventory using dollar-value LIFO? Round to the nearest dollar.
Inventory Write-Down Stiles Corporation uses the FIFO cost flow assumption and is in the process of applying the LCNRV rule for each of two products in its ending inventory. A profit margin of 30% on the selling price is considered normal for each product. Specific data for each product are as follows: Inventory Write-Down Use the information in E8-1. Assume that Stiles uses the LIFO cost flow assumption and is applying the LCM rule. Required: 1. What is the correct inventory value for each product? 2. Next Level With regard to requirement 1, what effect does the imposition of the constraints on market value have on the inventory valuations?
Lower of Cost or Market Garcia Company uses FIFO, and its inventory at the end of the year was recorded in the accounting records at $17,800. Due to technological changes in the market, Garcia would be able to replace its inventory for $16,500. Required: 1. Using the lower of cost or market method, what amount should Garcia report for inventory on its balance sheet at the end of the year? 2. Prepare the journal entry required to value the inventory at the lower of cost or market.
14. Decker Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Product Quantity UnitCost UnitSellingPrice A 1,200 $ 14 $ 20 B 1,000 19 22 C 800 5 10 D 400 9 8 E 800 18 17 The cost to sell for each product consists of a 10 percent sales commission. Required:1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products.2. Determine the carrying value of inventory at December 31, 2021, assuming the LCNRV rule is applied to the entire inventory.3. Assuming inventory write-downs are common for Decker, record any necessary year-end adjusting entry based on the amount calculated in requirement 2.
Tatum Company has four products in its inventory. Information about the Decemnber 31, 2021, Inventory is as follows: Total Net Realizable Value Product 101 Total Cost $134,000 97,000 67,000 37,000 $107,000 117,000 57,000 57,000 102 103 104 Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) 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 at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. Inventory Value Product Cost NRV 101 S. 134,000 107,000 102 97,000 117,000 57,000 67,000 37,000 103 104 57,000 S. 335,000 Required 2 > Prev 1 of 9 Next > Profile (1).pdf Profile.pdf Profile (1) .pdf
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Tetum Company has four products in its inventory. Information sbout the December 31, 2021, inventory is os follows: Total Net Realizable Value $187,0e0 Product Tatal Cost $134, 000 97,e00 101 102 117,00 57, 0ee 57,080 103 67, e00 37,e00 184 Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net reslizable value (LCNRV) 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 at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. Inventory Value Product Cost NRV 101 134,000 107,000 102 97,000 117,000 103 67,000 57,000 104 37,000 57,000 335,000
Management of Inventory 9.22 (1) What is the total annual cost of the existing inventory policy? (ii) How much money would be saved by employing the economic order quantity (EOQ) ? [Ans. (1) 65,063 (including cost of boxes); (ii) 62.50 or say 63] 8. Ace Ltd. Manufactures a product and the following particulars are collected for the year ended March, 2011: 1000 Units Monthly demand *100 $ Cost of placing an order 15 per unit Annual carring cost 50 units per weak Normal usage 25 units per week Minimum usage Maximum usage 75 units per week 4-6 weeks Re-order period You are required to calculate : (i) Re-order quantity ) Re-order level (iii) Minimum level (iv) Maximum level (v) Average stock level. [Ans. (i) 186 units, (ii) 450 units; (iii) 200 units; (iv) 536 units; (v) 368 units, or 293 units]
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Required: 15. If the FIFO cost flow method is used, the sale return shall be costed back into inventory at what unit cost?16. If the average cost flow method is used, the sale return shall be costed back into inventory at what unit cost?
ane Help Tatum Company has four products in Its inventory. Information about the December 31, 2021, inventory is as follows: Product 101 102 103 104 Total Cost $134,000 97,000 67,000 37,000 Total Net Realizable Value $107,000 117,000 57,000 57,000 Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) 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 at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) rule is applied to Individual products. Inventory Value Product Cost NRV 101 134,000 $ 107,000 97,000 117,000 102 67,000 57,000 103 57,000 37,000 335,000 104 0. S. Required 2 > Next > Prev 1.of 9 %24 %24