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Solve and show all the work for part  A and B only

Solve and show all the work for part  A and B only

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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Solve and show all the work for part  A and B only

Copperhead Company has provided you with the following information regarding its inventory of copper for September and October. Copperhead uses a perpetual inventory system. September 30 October 31 Copper inventory (in tonnes) Cost per tonne NRV per tonne 2,500 2,000 $505 $535 $540 $520 Instructions (a) Calculate the cost, the net realizable value, and the amount to be reported on the balance sheet for Copperhead's inventory at (1) September 30 and (2) October 31. (b) Prepare any journal entries required to record the LCNRV of the copper inventory at (1) September 30 and (2) October 31. (c) Assume that during the month of November the company did not purchase or sell any copper inventory and that the NRV per tonne was $530 on November 30. Is an adjusting entry required at November 30? Explain. If so, prepare the adjusting entry. (d) What will have to be disclosed in Copperheads notes to the financial statements with regard to its copper inventory?
Transcribed Image Text:Copperhead Company has provided you with the following information regarding its inventory of copper for September and October. Copperhead uses a perpetual inventory system. September 30 October 31 Copper inventory (in tonnes) Cost per tonne NRV per tonne 2,500 2,000 $505 $535 $540 $520 Instructions (a) Calculate the cost, the net realizable value, and the amount to be reported on the balance sheet for Copperhead's inventory at (1) September 30 and (2) October 31. (b) Prepare any journal entries required to record the LCNRV of the copper inventory at (1) September 30 and (2) October 31. (c) Assume that during the month of November the company did not purchase or sell any copper inventory and that the NRV per tonne was $530 on November 30. Is an adjusting entry required at November 30? Explain. If so, prepare the adjusting entry. (d) What will have to be disclosed in Copperheads notes to the financial statements with regard to its copper inventory?
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