Metlock Company began operations in 2020 and determined its ending inventory at cost and at LCNRV at December 31, 2020, and December 31, 2021. This information is presented below.     Cost   Net Realizable Value 12/31/20   $337,190   $311,120   12/31/21   371,550   349,640   (a) Prepare the journal entries required at December 31, 2020, and December 31, 2021, assuming inventory is recorded at LCNRV and a perpetual inventory system using the cost-of-goods-sold method. (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 0 for the amounts.)   (b) Prepare journal entries required at December 31, 2020, and December 31, 2021, assuming inventory is recorded at LCNRV and a perpetual system using the loss method. (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 0 for the amounts.)   (c) Which of the two methods above provides the higher net income in each year?

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A:

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Q: During 2021, a company sells 365 units of inventory for $93 each. The company has the following…

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A: 1. FIFO Method - Under FIFO Method, Inventory purchased first is sold first.

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A: LIFO method stands for Last In First Out. Under this method, the inventory purchased recently is…

Q: 20 137 144 MB 35 171 185 SL 39 91 77 Required: Calculate LCNRV for the inventory: a. As a whole…

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A: Most of ending inventory is to be reported at cost index 1.06

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A: The ending inventory comprises the cost of the units that are not sold yet. The inventory can be…

Q: he following data are available for Sellco for the fiscal year ended on January 31, 2020:…

A: Calculation of COGS and ending inventory: FIFO COGS= (500*4)+(600*5)+(500*6) =2000+ 3000 +3000 =$…

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A: .FIFO: This is a method of  inventory valuation .Asset acquired first are sold first in this method…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.