Required information [The following information applies to the questions displayed below.] For the current year, Parker Games has the following inventory transactions related to its traditional board games. Pa Games uses a periodic inventory system. Date Jan. 1 Mar. 12 Transaction Units 120 90 60 Total Cost $2,520 1,440 540 Unit Cost Beginning inventory Purchase Purchase $21 16 Sep. 17 9. 270 $4,500 Jan. 1-Dec. 31 Sales 170 Because of the increasing popularity of electronic video games, Parker Games continues to see a decline in the dem for board games. Sales prices have decreased by over 50% during the year. At the end of the year, Parker estimates net realizable value of the 100 units of unsold inventory to be $500. 3-a. Determine the amount of ending inventory to report using lower of cost and net realizable value. Lower of Cost and NRV FIFO
Required information [The following information applies to the questions displayed below.] For the current year, Parker Games has the following inventory transactions related to its traditional board games. Pa Games uses a periodic inventory system. Date Jan. 1 Mar. 12 Transaction Units 120 90 60 Total Cost $2,520 1,440 540 Unit Cost Beginning inventory Purchase Purchase $21 16 Sep. 17 9. 270 $4,500 Jan. 1-Dec. 31 Sales 170 Because of the increasing popularity of electronic video games, Parker Games continues to see a decline in the dem for board games. Sales prices have decreased by over 50% during the year. At the end of the year, Parker estimates net realizable value of the 100 units of unsold inventory to be $500. 3-a. Determine the amount of ending inventory to report using lower of cost and net realizable value. Lower of Cost and NRV FIFO
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
answer the following question 3A based on the provided information

Transcribed Image Text:**Required Information**
_For the current year, Parker Games has the following inventory transactions related to its traditional board games. Parker Games uses a periodic inventory system._
| Date | Transaction | Units | Unit Cost | Total Cost |
|------------|----------------------|-------|-----------|------------|
| Jan. 1 | Beginning inventory | 120 | $21 | $2,520 |
| Mar. 12 | Purchase | 90 | 16 | 1,440 |
| Sep. 17 | Purchase | 60 | 9 | 540 |
| | | 270 | | $4,500 |
| Jan. 1-Dec. 31 | Sales | 170 | | |
Because of the increasing popularity of electronic video games, Parker Games continues to see a decline in the demand for board games. Sales prices have decreased by over 50% during the year. At the end of the year, Parker estimates the net realizable value of the 100 units of unsold inventory to be $500.
3-a. Determine the amount of ending inventory to report using the lower of cost and net realizable value.
**Explanation of Diagram:**
The diagram is a table showing the inventory transactions for Parker Games. It lists the dates of transactions, types of transactions, number of units, unit cost, and total cost for beginning inventory and purchases. Additionally, it notes the total units accounted for and sales units over the year. The table highlights the calculation needed for determining ending inventory based on cost and net realizable value due to a significant drop in sales price.
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps

Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education