None Forest Company has five products in its Inventory. Information about ending inventory follows.ProductAQuantity700Unit CostUnit ReplacementCost$ 21$ 23B1,0002622с9001413D600E50018251523Unit sellingPrice$ 2729191724The cost to sell for each product consists of a 20 percent sales commission. The normal profit for each product is 40 percent of theselling price.Required:1. Determine the carrying value of ending inventory, assuming the lower of cost or market (LCM) rule is applied to individualproducts.2. Determine the carrying value of Inventory, assuming the LCM rule is applied to the entire inventory.3. Assuming Inventory write-downs are common for Forest, record any necessary year-end adjusting entry based on the amountcalculated in requirement 2Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3Determine the carrying value of ending inventory, assuming the lower of cost or market (LCM) rule is applied to individualproducts.Note: Do not round intermediate calculations.Product(units)A(700)B (1,000)C (900)D (600)E(500)RCNRVNRV minus NPMarketCostInventoryvalueTotal< Required 1S0 SRequired 2 >0$0

By comparing the product cost and market value, the inventory valuation approach known as the LCM…

Forest Company has five products in its Inventory. Information about ending inventory follows. Unit Replacement Product Quantity Unit Cost 21 Unit selling Price 27 13 15 19 17 TTTTT 14 The cost to sell for each product consists of a 20 percent sales commission. The normal profit for each product is 40 percent of the selling price.

Forest Company has five products in its Inventory. Information about ending inventory follows. Unit Replacement Product Quantity Unit Cost 21 Unit selling Price 27 13 15 19 17 TTTTT 14 The cost to sell for each product consists of a 20 percent sales commission. The normal profit for each product is 40 percent of the selling price.

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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