**Inventory Valuation Information - Marin, Inc.**Marin, Inc. values its inventory at the lower of LIFO cost or market. The following information is available from the company's inventory records as of December 31, 2020:| Item | Quantity | Unit Cost | Replacement Cost/Unit | Estimated Selling Price/Unit | Completion & Disposal Cost/Unit | Normal Profit Margin/Unit ||-------|----------|-----------|-----------------------|-----------------------------|--------------------------------|----------------------------|| X490 | 10,404 | $12.75 | $12.19 | $14.28 | $3.06 | $3.47 || X512 | 5,049 | $7.14 | $7.65 | $9.08 | $0.26 | $1.84 || X682 | 18,360 | $19.38 | $18.97 | $32.18 | $3.32 | $9.18 || Z195 | 12,750 | $14.54 | $14.28 | $20.20 | $1.43 | $5.87 || Z846 | 8,772 | $12.24 | $13.01 | $14.23 | $2.14 | $1.12 |This table provides a detailed breakdown of Marin, Inc.'s inventory, listing quantities, various costs per unit, and expected profit margins. The figures are crucial for assessing inventory value and determining pricing strategies. **Instructions for Recording Journal Entries****Scenario:**Marin, Inc. needs to record journal entries to write down the ending inventory from cost to market. It is Marin’s first year of operations. Note that credit account titles are automatically indented when the amount is entered. Ensure all amounts are rounded to 0 decimal places (e.g., 5,275).**Journal Entries Format:**1. **Account Titles and Explanation** - **Cost of Goods Sold Method:** | Account Titles | Debit | Credit | |----------------------------------|----------|----------| | [Account Name] | [Amount] | | | [Account Name] (Indented) | | [Amount] | - **Loss Method:** | Account Titles | Debit | Credit | |----------------------------------|----------|----------| | [Account Name] | [Amount] | | | [Account Name] (Indented) | | [Amount] | **Note:**- Fill in the blanks with the appropriate account titles and amounts.- Ensure amounts are accurately rounded and indented as per the requirement.

Inventory should be recorded at the lesser of its cost or the amount at which it can be sold under…

Marin, Inc. values its inventory at the lower-of-LIFO-cost-or-market. The following information is available from the company's inventory records as of December 31, 2020. Unit Replacement Estimated Selling Completion & Disposal Normal Profit Item Quantity Cost Cost/Unit Price/Unit Cost/Unit Margin/Unit X490 10,404 $ 12.75 $ 12.19 $ 14.28 $ 3.06 $ 3.47 X512 5,049 7.14 7.65 9.08 0.26 1.84 X682 18,360 19.38 18.97 32.18 3.32 9.18 Z195 12,750 14.54 14.28 20.20 1.43 5.87 Z846 8,772 12.24 13.01 14.23 2.14 1.12

Marin, Inc. values its inventory at the lower-of-LIFO-cost-or-market. The following information is available from the company's inventory records as of December 31, 2020. Unit Replacement Estimated Selling Completion & Disposal Normal Profit Item Quantity Cost Cost/Unit Price/Unit Cost/Unit Margin/Unit X490 10,404 $ 12.75 $ 12.19 $ 14.28 $ 3.06 $ 3.47 X512 5,049 7.14 7.65 9.08 0.26 1.84 X682 18,360 19.38 18.97 32.18 3.32 9.18 Z195 12,750 14.54 14.28 20.20 1.43 5.87 Z846 8,772 12.24 13.01 14.23 2.14 1.12

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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Jenks Company developed the following information about its inventories in applying the lower-of-cost-or-net-realizabl e-value(LCNRV) basis in valuing inventories: Product Cost NRV A $114,000 $120,000 B 80,000 76,000 C 160,000 162,000 After Jenks applies the LCNRV rule, the value of the inventory reported on the balance sheet would be
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Montana co has determined its year end inventory on a fifo basis tp be 635000. info pertaining to that inventory is as follows selling price 610000 cost to sell 34000 replacement cost 549000 what should be the reported value of montanas inventory?
ABC company has the following information is available for June 2019: Cost Retail $ 60,000 $ 100,000 Inventory, 1 June Purchases 270,000 350,000 Purchase returns 2,500 1,500 Freight-in 5,500 Net markups 9,500 Net markdowns 16,000 Sales 400,000 Sales discount 3,500 If ABC company uses the cost method to determine its ending inventory at cost. what is the cost to retail ratio?
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HOMETOWN CHA-CHA DABARKADS employs the lower of cost of net realizable value in the measurement of inventory. On December 31, 2020, the ending inventory was reported as follows: Inventory (20,000 @ P21) P420,000 Less: Allowance for inventory writedown 60,000 Net Realizable Value P360,000 Sales and purchases for 2021 are as follows: Purchases Sales Quarter Units UnitCost TotalCost Units UnitPrice TotalPrice 1st 30,000 P18 P540,000 15,000 P19 P285,000 2nd 25,000 20 500,000 30,000 23 690,000 3rd 22,000 21 462,000 25,000 25 625,000 4th 35,000 19 665,000 20,000 24 480,000 The company uses weighted average method in determining inventory cost. On December 31, 2021. The net realizable value per unit is P19. REQUIRED 1. Compute the cost of inventory on December 31, 2021. Note: Round off the weighted average unit cost to two decimal places. 2. Compute the gain/(loss) on inventory writedown. Note: If the amount is a loss, place a hyphen (-) before the figure e.g. -1,234 3. Compute the cost of…
Flame Company adopted the FIFO approach of in pricing in connection with the use of the retail inventory method. The retail records showed the following: entory Cost Retail 2020 928,000 7,028,000 42,000 30,000 6,840,000 556,800 4,576,000 Beginning inventory Purchases Net markup Net markdown Sales 2021 6,812,000 56,000 68,000 6,928,000 4,760,000 Purchases Net markup Net markdown Sales Required: Determine the estimated cost of inventory on December 31, 2020 and 2021 applying the FIFO retail approach.
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Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows: Total Net Product Total Cst Realizable Value 101 102 $148,000 104,000 74,000 $114,000 124,000 64,000 64,000 103 104 44,000 Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. 2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. Inventory Value Product Cost NRV 101 2$ 148,000 114,000 $114,000 102 104,000 124,000 104,000 103 74,000 64,000 66,000 X 104 44,000 64,000 44,000 370,000 $ 328,000