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Skysong Import has one of the largest selection of imported food products from Europe. Some of the food products ar nearing the "best before date" and as such the wholesale price that Skysong charges its distributors will have to be reduced to move the merchandise. Skysong reported the following cost and net realizable value for inventory at December 31: Pasta Brand Olive Varieties Product Item Pasta Brand: Decicco Bari Rustichella Olive Varieties: Liguria Gaeta Kalamatas Product Item Total Decicco Bari Rustichella Liguria Gaeta Kalamatas Calculate the total ending inventory balance for pasta brands and olive varieties using cost and the lower of cost or net realizable value for each item. $ Units $ 79 67 58 90 114 66 Unit Cost Total cost $105 $90 $95 $123 $88 $98 $184 $246 $135 $135 $97 $92 NRV U $ $ Lower of Cost or NRV 11 Prepare the adjusting journal entry for the inventory write-down on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before crodit ontrul

Skysong Import has one of the largest selection of imported food products from Europe. Some of the food products ar nearing the "best before date" and as such the wholesale price that Skysong charges its distributors will have to be reduced to move the merchandise. Skysong reported the following cost and net realizable value for inventory at December 31: Pasta Brand Olive Varieties Product Item Pasta Brand: Decicco Bari Rustichella Olive Varieties: Liguria Gaeta Kalamatas Product Item Total Decicco Bari Rustichella Liguria Gaeta Kalamatas Calculate the total ending inventory balance for pasta brands and olive varieties using cost and the lower of cost or net realizable value for each item. $ Units $ 79 67 58 90 114 66 Unit Cost Total cost $105 $90 $95 $123 $88 $98 $184 $246 $135 $135 $97 $92 NRV U $ $ Lower of Cost or NRV 11 Prepare the adjusting journal entry for the inventory write-down on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before crodit ontrul

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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Skysong Import has one of the largest selection of imported food products from Europe. Some of the food products are nearing the "best before date" and as such the wholesale price that Skysong charges its distributors will have to be reduced to move the merchandise. Skysong reported the following cost and net realizable value for inventory at December 31: Pasta Brand Olive Varieties Product Item Pasta Brand: Decicco Bari Rustichella Olive Varieties: Liguria Gaeta Kalamatas Product Item Total Decicco Bari Rustichella Liguria Gaeta Kalamatas Calculate the total ending inventory balance for pasta brands and olive varieties using cost and the lower of cost or net realizable value for each item. $ Units $ 79 67 58 90 114 66 Unit Cost NRV Total cost $90 $95 $123 $88 $98 $105 $184 $246 $135 $135 $97 $92 Lower of Cost or NRV 17 ¨ $ Prepare the adjusting journal entry for the inventory write-down on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry)
Transcribed Image Text:Skysong Import has one of the largest selection of imported food products from Europe. Some of the food products are nearing the "best before date" and as such the wholesale price that Skysong charges its distributors will have to be reduced to move the merchandise. Skysong reported the following cost and net realizable value for inventory at December 31: Pasta Brand Olive Varieties Product Item Pasta Brand: Decicco Bari Rustichella Olive Varieties: Liguria Gaeta Kalamatas Product Item Total Decicco Bari Rustichella Liguria Gaeta Kalamatas Calculate the total ending inventory balance for pasta brands and olive varieties using cost and the lower of cost or net realizable value for each item. $ Units $ 79 67 58 90 114 66 Unit Cost NRV Total cost $90 $95 $123 $88 $98 $105 $184 $246 $135 $135 $97 $92 Lower of Cost or NRV 17 ¨ $ Prepare the adjusting journal entry for the inventory write-down on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry)
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