Lower-of-Cost-or-Market Stalberg Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as follows: Units Unit Price Total Cost Jan. 1 Beginning inventory 10 $16 $160 Mar. 5 1st purchase 10 22 220 Sept. 9 2nd purchase 10 25 250 Dec. 8 3rd purchase 10 30 300 40 $930 There are 10 units of inventory on hand on December 31. For the weighted-average method, round calculations to two decimal places. If required, round your final answers to the nearest cent. 1. Calculate the total amount to be assigned to the ending inventory under each of the following periodic inventory methods: a. FIFO $fill in the blank 406f79042004059_1 b. Weighted-average $fill in the blank 406f79042004059_2 2. Assume that the market price per unit (cost to replace) of Stalberg's inventory on December 31, 20--, was $26. Calculate the total amount to be assigned to the ending inventory on December 31 under each of the following methods: a. FIFO lower-of-cost-or-market $fill in the blank 406f79042004059_3 b. Weighted-average lower-of-cost-or-market $fill in the blank 406f79042004059_4 Feedback FIFO assumes that the oldest units have been sold and the newest or freshest units are in the ending inventory. Weighted average is determined by dividing the total cost of units available for sale by the total number of units available for sale. Calculate ending inventory at market and determine which amount should be shown on the company's balance sheet. 3. What journal entry would be made under lower-of-cost-or-market for parts 2(a) FIFO and 2(b) Weighted-average? If no entry is required, select "No Entry Required". a. Loss on Write-Down of Inventory fill in the blank 44d21ffe307dfbf_2 fill in the blank 44d21ffe307dfbf_3 Merchandise Inventory fill in the blank 44d21ffe307dfbf_5 fill in the blank 44d21ffe307dfbf_6 b. No Entry Required fill in the blank 44d21ffe307dfbf_8 fill in the blank 44d21ffe307dfbf_9 No Entry Required fill in the blank 44d21ffe307dfbf_11 fill in the blank 44d21ffe307dfbf_12

Lower-of-Cost-or-Market Stalberg Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as follows: Units Unit Price Total Cost Jan. 1 Beginning inventory 10 $16 $160 Mar. 5 1st purchase 10 22 220 Sept. 9 2nd purchase 10 25 250 Dec. 8 3rd purchase 10 30 300 40 $930 There are 10 units of inventory on hand on December 31. For the weighted-average method, round calculations to two decimal places. If required, round your final answers to the nearest cent. 1. Calculate the total amount to be assigned to the ending inventory under each of the following periodic inventory methods: a. FIFO $fill in the blank 406f79042004059_1 b. Weighted-average $fill in the blank 406f79042004059_2 2. Assume that the market price per unit (cost to replace) of Stalberg's inventory on December 31, 20--, was $26. Calculate the total amount to be assigned to the ending inventory on December 31 under each of the following methods: a. FIFO lower-of-cost-or-market $fill in the blank 406f79042004059_3 b. Weighted-average lower-of-cost-or-market $fill in the blank 406f79042004059_4 Feedback FIFO assumes that the oldest units have been sold and the newest or freshest units are in the ending inventory. Weighted average is determined by dividing the total cost of units available for sale by the total number of units available for sale. Calculate ending inventory at market and determine which amount should be shown on the company's balance sheet. 3. What journal entry would be made under lower-of-cost-or-market for parts 2(a) FIFO and 2(b) Weighted-average? If no entry is required, select "No Entry Required". a. Loss on Write-Down of Inventory fill in the blank 44d21ffe307dfbf_2 fill in the blank 44d21ffe307dfbf_3 Merchandise Inventory fill in the blank 44d21ffe307dfbf_5 fill in the blank 44d21ffe307dfbf_6 b. No Entry Required fill in the blank 44d21ffe307dfbf_8 fill in the blank 44d21ffe307dfbf_9 No Entry Required fill in the blank 44d21ffe307dfbf_11 fill in the blank 44d21ffe307dfbf_12

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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Lower-of-Cost-or-Market

Stalberg Company's beginning inventory and purchases during the fiscal year ended December 31, 20--, were as follows:

		Units	Unit Price	Total Cost
Jan. 1	Beginning inventory	10	$16	$160
Mar. 5	1st purchase	10	22	220
Sept. 9	2nd purchase	10	25	250
Dec. 8	3rd purchase	10	30	300
		40		$930

There are 10 units of inventory on hand on December 31.

For the weighted-average method, round calculations to two decimal places. If required, round your final answers to the nearest cent.

1. Calculate the total amount to be assigned to the ending inventory under each of the following periodic inventory methods:

a. FIFO
$fill in the blank 406f79042004059_1

b. Weighted-average
$fill in the blank 406f79042004059_2

2. Assume that the market price per unit (cost to replace) of Stalberg's inventory on December 31, 20--, was $26. Calculate the total amount to be assigned to the ending inventory on December 31 under each of the following methods:

a. FIFO lower-of-cost-or-market
$fill in the blank 406f79042004059_3

b. Weighted-average lower-of-cost-or-market
$fill in the blank 406f79042004059_4

Feedback

FIFO assumes that the oldest units have been sold and the newest or freshest units are in the ending inventory.

Weighted average is determined by dividing the total cost of units available for sale by the total number of units available for sale.

Calculate ending inventory at market and determine which amount should be shown on the company's balance sheet.

3. What journal entry would be made under lower-of-cost-or-market for parts 2(a) FIFO and 2(b) Weighted-average? If no entry is required, select "No Entry Required".

a.	Loss on Write-Down of Inventory	fill in the blank 44d21ffe307dfbf_2	fill in the blank 44d21ffe307dfbf_3
	Merchandise Inventory	fill in the blank 44d21ffe307dfbf_5	fill in the blank 44d21ffe307dfbf_6
b.	No Entry Required	fill in the blank 44d21ffe307dfbf_8	fill in the blank 44d21ffe307dfbf_9
	No Entry Required	fill in the blank 44d21ffe307dfbf_11	fill in the blank 44d21ffe307dfbf_12

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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