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Product E CABCDE Unit Quantity 1,500 1,300 Cost $ 20 25 1,100 5 700 1,100 9 24 Unit Selling Price $ 26 28 10 8 23 The cost to sell for each product consists of a 10 percent sales commission. 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. Determine the carrying value of ending inventory, assuming the LCNRV rule is applied to the entire Inventory. 3. Assuming Inventory write-downs are common for Decker, record any necessary year-end adjusting entry based on the amount calculated in requirement 2.

Product E CABCDE Unit Quantity 1,500 1,300 Cost $ 20 25 1,100 5 700 1,100 9 24 Unit Selling Price $ 26 28 10 8 23 The cost to sell for each product consists of a 10 percent sales commission. 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. Determine the carrying value of ending inventory, assuming the LCNRV rule is applied to the entire Inventory. 3. Assuming Inventory write-downs are common for Decker, record any necessary year-end adjusting entry based on the amount calculated in requirement 2.

FINANCIAL ACCOUNTING
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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Unit Product Quantity Cost A 1,500 $ 20 B 1,300 25 C 1,100 5 D E 700 1,100 9 24 Unit Selling Price $ 26 28 10 8 23 The cost to sell for each product consists of a 10 percent sales commission. 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. Determine the carrying value of ending inventory, assuming the LCNRV rule is applied to the entire Inventory. 3. Assuming Inventory write-downs are common for Decker, record any necessary year-end adjusting entry based on the amount calculated in requirement 2. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the carrying value of ending inventory, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. Note: Do not round intermediate calculations. Product Units Cost NRV Inventory Value A 1,500 B 1,300 C 1,100 D 700 E 1,100 88 $ 0 $ 0 $ Required 1 Required 2 >
Transcribed Image Text:Unit Product Quantity Cost A 1,500 $ 20 B 1,300 25 C 1,100 5 D E 700 1,100 9 24 Unit Selling Price $ 26 28 10 8 23 The cost to sell for each product consists of a 10 percent sales commission. 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. Determine the carrying value of ending inventory, assuming the LCNRV rule is applied to the entire Inventory. 3. Assuming Inventory write-downs are common for Decker, record any necessary year-end adjusting entry based on the amount calculated in requirement 2. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the carrying value of ending inventory, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. Note: Do not round intermediate calculations. Product Units Cost NRV Inventory Value A 1,500 B 1,300 C 1,100 D 700 E 1,100 88 $ 0 $ 0 $ Required 1 Required 2 >
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