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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

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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answer the following question 3A based on the provided information
**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.
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.
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