Sanchez Company was formed on January 1 of the current year and is preparing the annual financial statements dated December 31, current year. Ending inventory information about the four major items stocked for regular sale follows: Item A 039 C A D Quantity Unit Cost When on Hand Acquired (FIFO) C D 31 66 46 21 Required: 1. Compute the valuation that should be used for the current year ending inventory using lower of cost or net realizable value applied on an item-by-item basis.. 2. What will be the effect of the write-down of inventory to lower of cost or net realizable value on cost of goods sold for the year ended December 31, current year? Complete this question by entering your answers in the tabs below. ENDING INVENTORY, CURRENT YEAR Required 1 Required 2 Compute the valuation that should be used for the current year ending inventory using lower of cost or net realizable value applied on an item-by-item basis. Total Net Her Quantity Total Cost Realizable Value 31 60 40 21 Total $16 45 56 33 S 0 $ Net Realizable Value (Market) at Year-End $11 41 58 28 Lower of Cost or NRV 0 $ 0

Sanchez Company was formed on January 1 of the current year and is preparing the annual financial statements dated December 31, current year. Ending inventory information about the four major items stocked for regular sale follows: Item A 039 C A D Quantity Unit Cost When on Hand Acquired (FIFO) C D 31 66 46 21 Required: 1. Compute the valuation that should be used for the current year ending inventory using lower of cost or net realizable value applied on an item-by-item basis.. 2. What will be the effect of the write-down of inventory to lower of cost or net realizable value on cost of goods sold for the year ended December 31, current year? Complete this question by entering your answers in the tabs below. ENDING INVENTORY, CURRENT YEAR Required 1 Required 2 Compute the valuation that should be used for the current year ending inventory using lower of cost or net realizable value applied on an item-by-item basis. Total Net Her Quantity Total Cost Realizable Value 31 60 40 21 Total $16 45 56 33 S 0 $ Net Realizable Value (Market) at Year-End $11 41 58 28 Lower of Cost or NRV 0 $ 0

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Description: What will be the effect of the write down of inventory to lower of cost or net realizable value on cost of goods sold for the year ended December 31, current year?cost of goods sold expense by the amount of the wree-downRequired Sanchez Company was

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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Please help with Question A
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