Item A B C D E Quantity 1,400 1,100 1,300 1.300 1,700 Unit Cost $8.48 9.27 6.33 4,29 7:23 Replacement Cost/Unit $9.49 8.93 6.10 4.75 7.12 Estimated Selling Price/Unit $11.87 10.62 8.14 7.12 7.57 Completion & Disposal Cost/Unit $1.70 1.02 1.30 0.90 0.79 Normal Profit Margin/Unit $2.03 1.36 0.68 1.70 1.13. Greg Forda is an accounting clerk in the accounting department of Bridgeport Co., and he cannot understand why the market value keeps changing from replacement cost to net realizable value to something that he cannot even figure out. Greg is very confused, and he is the one who records inventory purchases and calculates ending inventory. You are the manager of the department and an accountant.
Item A B C D E Quantity 1,400 1,100 1,300 1.300 1,700 Unit Cost $8.48 9.27 6.33 4,29 7:23 Replacement Cost/Unit $9.49 8.93 6.10 4.75 7.12 Estimated Selling Price/Unit $11.87 10.62 8.14 7.12 7.57 Completion & Disposal Cost/Unit $1.70 1.02 1.30 0.90 0.79 Normal Profit Margin/Unit $2.03 1.36 0.68 1.70 1.13. Greg Forda is an accounting clerk in the accounting department of Bridgeport Co., and he cannot understand why the market value keeps changing from replacement cost to net realizable value to something that he cannot even figure out. Greg is very confused, and he is the one who records inventory purchases and calculates ending inventory. You are the manager of the department and an accountant.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
b
Transcribed Image Text:Bridgeport Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from
the company's inventory records as of December 31, 2025
Item
A
B
C
D
E
(a)
Quantity
1,400
1,100
1.300
1,300
1,700
Item A
Item 8
Unit Cost
$6.48
✓ Your answer is correct
9.27
6.33
4.29
7:23
$
$
Replacement
Cost/Unit
Lower-of-Cost-or-Market
(Per unit basis)
$9.49
8.93
8.48
6.10
8.99
4.75
7.12
Estimated Selling
Price/Unit
$11.87
10.62
8.14
7.12
Greg Forda is an accounting clerk in the accounting department of Bridgeport Co., and he cannot understand why the market value
keeps changing from replacement cost to net realizable value to something that he cannot even figure out. Greg is very confused, and
he is the one who records inventory purchases and calculates ending inventory. You are the manager of the department and an
accountant.
7.37
Completion & Disposal
Cost/Unit
$1.70
102
Calculate the lower-of-cost or market using the individual item approach. (Round answers to 2 decimal places, eg 78.73)
1:30
0.90
0.79
Normal Pront
Margin/Unit
$2.03
136
0.68
1.70
1.13.
Transcribed Image Text:(b)
Show the journal entry he will need to make in order to write down the ending inventory from cost to market. (List all debit entries
before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is
required, select "No entry" for the account titles and enter O for the amounts)
Account Titles and Explanation
Cost of Goods sold Method:
Loss method:
eTextbook and Media
List of Accounts
Save for Later
Debit
Credit
1000
Attempts: unlimited Submit Antwer
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