Product 101 102 103 104 Total Cost $ 150,000 105,000 75,000 45,000 Total Net Realizable Value $ 115,000 125,000 65,000 65,000 Required: 1. Determine the carrying value of ending inventory 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the carrying value of ending inventory assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. Product Cost NRV Inventory Value 101 $ 150,000 $ 115,000 102 105,000 125,000 103 75,000 65,000 104 45,000 65,000 $ 375,000 $ 0

Product 101 102 103 104 Total Cost $ 150,000 105,000 75,000 45,000 Total Net Realizable Value $ 115,000 125,000 65,000 65,000 Required: 1. Determine the carrying value of ending inventory 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the carrying value of ending inventory assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. Product Cost NRV Inventory Value 101 $ 150,000 $ 115,000 102 105,000 125,000 103 75,000 65,000 104 45,000 65,000 $ 375,000 $ 0

Name: ProductTotal Cost101$ 150,000102105,00010310475,00045,000Total Net Re
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Description: ProductTotal Cost101$ 150,000102105,00010310475,00045,000Total Net RealizableValue$ 115,000125,00065,00065,000Required:1. Determine the carrying value of ending inventory assuming the lower of cost or net realizable value (LCNRV) rule is applied toi

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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PROBLEM 2: (CHANGE IN ACCOUNTING POLICY) Shilo Co. has been using the weighted average method of inventory costing since it began operations in 2018. Shilo Co. has reported the following net income: Net income Under Weighted Average Method P 400,000 2018 2019 285,000 320,000 2020 Beginning 2021 the company decided to change the inventory cost formula to FIFO method. The following are the December 31 inventory balances under each method: 2018 2019 2020 MI, end Per Books (Weighted Average) P 180,000 250,000 330,000 MI, End (FIFO) P 200,000 310,000 440,000 MI, End Per Books Understated By P 20,000 60,000 110,000 Compute for the following: a. Restated net income for 2019 and 2020 as a result of the change in policy b. Adjustment to the accumulated profits beginning balance of 2021 as a result of the change
7. Topanga Group began operations early in 2024. Inventory purchase information for the quarter ended March 31, 2024, for Topanga's only product is provided below. The unit costs include the cost of freight. The company uses a periodic inventory system to report inventory and cost of goods sold. Date of Purchase January 7 February 16 March 22 Totals Units 9,000 25,000 29,000 63,000 Unit Cost RM 4.00 5.00 6.00 Total Cost RM 36,000 125,000 174,000 RM 335,000 Sales for the quarter, all at RM9 per unit, totaled 36,000 units leaving 27,000 units on hand at the end of the quarter. Required: 1. Calculate Topanga's cost of goods sold for the first quarter using: a. FIFO b. Average cost ii. Calculate Topanga's gross profit ratio for the first quarter using FIFO and Average cost. iii. Comment on the relative effect of each of the inventory methods on the gross profit ratio.
Exercise 9-6 (Algo) Lower of cost or market [LO9-1] Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows: Total Total Net Product Total Cost Replacement Cost $118,100 91,000 42,800 30,200 Realizable Value $129,000 96,400 64,200 32,300 $107,300 117,800 53,700 54,000 101 102 103 104 The normal profit is 30% of total cost. Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry. X 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 market (LCM) rule is applied to individual products. Inventory Value Replacement NRV NRV - NP Market Product…
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Current Attempt in Progress Crane Corporation had the following items in inventory as at December 31, 2023: Unit Item No. Quantity Cost NRV A1 120 $3.00 $3.50 B4 140 2.20 2.10 C2 150 8.20 9.40 D3 170 7.20 6.80 Assume that Crane uses a periodic inventory system, and that none of the inventory items can be grouped together for accounting purposes. The opening inventory on January 1, 2023, was $3,200 in total. (a) Prepare the year-end adjusting entries required to adjust to the lower of cost or net realizable value using the direct method. (Credit account titles are automatically indented when the 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. List all debit entries before credit entries.) SUPPORT hp
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Problem 14-5 (AICPA Adapted)/ Under the average cost approach in applying the retail method, what is the estimated cost of inventory? Sales for the year totaled P5,500,000. Markdown amounted Fainthearted Company provided the following information for the current year: Cost Beginning inventory Purchases Additional markup Retail 750,000 4,150,000 1,000,000 5,800,000 200,000 Available for sale 4,900,000 7,000,000 to P100,000. Under the average cost approach in applying the retail a. 1,050,000 b. 1,400,000 994,000 C. 980,000 d.
3 A company has four products in its inventory. Information about ending inventory is as follows: Total Net Realizable Value. Product 101 102 103 104 Total Cost $ 136,000 99,000 68,000 38,000 Required: 1. Determine the carrying value of ending inventory 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 the company, record any necessary year-end adjusting entry. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Product Determine the carrying value of ending inventory assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. 101 102 103 104 $ 108,000 118,000 58,000 58,000 Cost $ 136,000 $ 99,000 68,000 38,000 341,000 $ NRV 108,000 118,000 58,000 58,000 Inventory Value $ 0