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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question
Product
Total Cost
101
$ 150,000
102
105,000
103
104
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
<Required 1
Required 2 >
Transcribed Image Text:Product Total Cost 101 $ 150,000 102 105,000 103 104 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 <Required 1 Required 2 >
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