**Inventory Write-Down**The following information is from Aden Company's records:| Product | Group | Units | Cost/Unit | Market/Unit ||---------|-------|-------|-----------|-------------|| A | 1 | 600 | $1.10 | $0.90 || B | 1 | 250 | 1.50 | 1.55 || C | 2 | 200 | 4.90 | 5.15 || D | 2 | 100 | 6.50 | 6.40 || E | 3 | 80 | 25.00 | 24.60 |**Required:**Determine the correct inventory value if the company applies the Lower of Cost or Net Realizable Value (LCNRV) rule to each of the following:a. **Individual items**- Product A: $540 ✔️- Product B: $450 ❌- Product C: $980 ✔️- Product D: $640 ✔️- Product E: $1,968 ✔️- Total inventory value: $4,578 ❌b. **Groups of items**- Group 1: $1,005 ❌- Group 2: $1,630 ✔️- Group 3: $1,968 ✔️- Total inventory value: $4,603 ❌c. **The inventory as a whole**- Total inventory value: $4,643 ❌**Explanation of Diagrams:**The diagrams consist of rows for each product and group, showing calculated values based on the LCNRV rule application. Each calculated value is accompanied by a checkmark (✔️) if correct or an X (❌) if incorrect. The total inventory values for individual items, groups, and the whole inventory are marked with an X, indicating incorrect application of the LCNRV rule.

Name: **Inventory Write-Down**The following information is from Aden Compan
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: **Inventory Write-Down**The following information is from Aden Company's records:| Product | Group | Units | Cost/Unit | Market/Unit ||---------|-------|-------|-----------|-------------|| A | 1 | 600 | $1.10 | $0.90 || B

The inventory can be valued using LCNRV or LCM by applying lowest cost from the inventory.

Business

Accounting

Inventory Write-Down The following information is taken from Aden Company's records: Product Group Units Cost/Unit Market/Unit A 1 600 $1.10 $0.90 B 1 250 1.50 1.55 2 200 4.90 5.15 D 2 100 6.50 6.40 E 3 80 25.00 24.60 Required: What is the correct inventory value if the company applies the LCNRV rule to each of the following?

Inventory Write-Down The following information is taken from Aden Company's records: Product Group Units Cost/Unit Market/Unit A 1 600 $1.10 $0.90 B 1 250 1.50 1.55 2 200 4.90 5.15 D 2 100 6.50 6.40 E 3 80 25.00 24.60 Required: What is the correct inventory value if the company applies the LCNRV rule to each of the following?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item. Item A B с Total Inventory Quantity 181 82 60 Cost per Unit $10 14 20 Market value per Unit $14 11 22 Cost $1,810 1,148 1,200 Total Market $2,534 902 1,320 LA LCM
Lower-of-Cost-or-Market Inventory On the basis of the following data, determine the value of the inventory at the lower of cost or market. Assemble the data in th form illustrated in Exhibit 9. Inventory Inventory Cost per Market Value per Unit Item Quantity Unit (Net Realizable Value) Birch 46 $171 $179 Сypress 23 141 161 Mountain Ash 39 72 70 Spruce 38 187 168 Willow 25 191 170 Inventory at the Lower of Cost or Market Inventory Item Total Cost Total Market Total Lower of C or M Birch Cypress Mountain Ash Spruce Willow Total
Lower-of-Cost-or-Market InventoryOn the basis of the following data, determine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in Exhibit 9. ProductInventoryQuantityUnitCost PriceUnitMarket Value per Unit(Net Realizable Value)Model A300$140$125Model B50090112Model C1506059Model D800120115Model E400140145 Inventory at the Lower of Cost or MarketProductTotal CostTotal MarketLower of Total Cost or Total MarketA$$$B C D E Total$$$
Lower-of-Cost-or-Market Inventory On the basis of the following data, determine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in Exhibit 9. InventoryItem InventoryQuantity Cost perUnit Market Value per Unit(Net Realizable Value) Birch 100 $125 $120 Cypress 75 100 108 Mountain Ash 80 90 86 Spruce 130 74 80 Willow 60 105 98 Inventory at the Lower of Cost or Market InventoryItem Total Cost Total Market Total Lower of C or M Birch $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Cypress fill in the blank 4 fill in the blank 5 fill in the blank 6 Mountain Ash fill in the blank 7 fill in the blank 8 fill in the blank 9 Spruce fill in the blank 10 fill in the blank 11 fill in the blank 12 Willow fill in the blank 13 fill in the blank 14 fill in the blank 15 Total $fill in the blank 16 $fill in the blank 17 $fill in the blank 18
Lower-of-Cost-or-Market Inventory On the basis of the following data, determine the value of the inventory at the lower of cost or market. Total Product Inventory Quantity Cost per Unit Market Value perUnit (Net Realizable Value) Cost Market LCM Adams 22 $51 $58 $ $ $ Coolidge 23 224 237 McKinley 27 167 152 Garfield 32 58 49 Lincoln 35 263 270 Total $ $ $
Required information [The following information applies to the questions displayed below.] Hemming Company reported the following current-year purchases and sales for its only product. Activities Beginning inventory Sales Purchase Sales Purchase Sales Purchase Totals Date January 1 January 10 March 14 March 15 July 30 October 5 October 26 a) Cost of Goods Sold using Specific Identification Available for Sale Date January 1 March 14 July 30 October 26 Less: Equals: Activity Beginning Inventory Purchase Purchase Purchase b) Gross Margin using Specific Identification # of units Units Acquired at Cost 300 units @ $14.00 = @ $19.00 = @ $24.00 = @ $29.00 = 300 520 500 200 1,520 520 units 500 units 200 units 1,520 units Ending inventory consists of 50 units from the March 14 purchase, 80 units from the July 30 purchase, and all 200 units from the October 26 purchase. Using the specific identification method, calculate the following. Cost Per # of units Unit sold MITSTRA 480 units @ $44.00 @…
Lower-of-Cost-or-Market Method On the basis of the following data, determine the value of the inventory at the lower-of-cost-or-market by applying lower-of-cost-or-market to each inventory item, as shown in Exhibit 10. Market Value per Unit Item Inventory Quantity Cost per Unit (Net Realizable Value) JFW1 140 $56 $52 SAW9 274 28 33
Required:a. Complete a subsidiary ledger record for the computer using each of the three inventory valuation methods listed below 1. Average cost.2. FIFO.3. LIFO. Your inventory records should show both purchases of this product, the sale on Mar 31, and the balance on hand on Mar 31, 2020. b. Which of the three cost flow assumptions will result in reporting the lowest net income for the current year? Explain
Lower-of-Cost-or-Market Method On the basis of the data shown below: Inventory Cost per Market Value per Unit Item Quantity Unit (Net Realizable Value) MX62 56 $56 $58 VZ31 107 29 26 Determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item, as shown in Exhibit 9.
nventory Write-Down The following information is taken from Aden Company's records: Product Group Units Cost/Unit Market/Unit A 1 600 $1.10 $0.90 B 1 250 1.50 1.55 C 2 200 4.90 5.15 D 2 100 6.50 6.40 E 3 80 25.00 24.60 Required: What is the correct inventory value if the company applies the LCNRV rule to each of the following?
On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item as shown in Exhibit below. Item Inventory Quantity Unit Cost Price ($) Unit Market Price ($) MT22 1642 91 88 4WY09 5278 37 44 1GDS 8898 185 172
Sunland Company follows the practice of pricing its inventory at LCNRV, on an individual-item basis. Item No. Quantity Costper Unit EstimatedSelling Price Cost to Completeand Sell 1320 1,700 $3.62 $5.09 $1.81 1333 1,400 3.05 3.84 1.13 1426 1,300 5.09 5.65 1.58 1437 1,500 4.07 3.62 1.53 1510 1,200 2.54 3.67 1.58 1522 1,000 3.39 4.41 0.90 1573 3,500 2.03 2.83 1.36 1626 1,500 5.31 6.78 1.70 From the information above, determine the amount of Sunland Company inventory.