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 >

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 2RE: Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net...

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