Subject:General Account Brooks Company carries three inventory items. The following information pertains to the ending inventory: Item Quantity Unit Cost Unit Market Value 220 $ 11 10 F 235 12 11 K 170 5 8 Required: a. Determine the ending inventory that Brooks will report on the balance sheet, assuming that it applies the lower- of-cost-or-market rule to individual inventory items. b. Prepare the necessary journal entry, assuming the decline in value was immaterial. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Subject:General Account Brooks Company carries three inventory items. The following information pertains to the ending inventory: Item Quantity Unit Cost Unit Market Value 220 $ 11 10 F 235 12 11 K 170 5 8 Required: a. Determine the ending inventory that Brooks will report on the balance sheet, assuming that it applies the lower- of-cost-or-market rule to individual inventory items. b. Prepare the necessary journal entry, assuming the decline in value was immaterial. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Chapter10: Inventory
Section: Chapter Questions
Problem 9PA: Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company,...
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
Transcribed Image Text:Subject:General Account
Brooks Company carries three inventory items. The
following information pertains to the ending inventory:
Item Quantity Unit Cost
Unit Market Value
220 $
11
10
F
235
12
11
K
170
5
8
Required:
a. Determine the ending inventory that Brooks will report
on the balance sheet, assuming that it applies the lower-
of-cost-or-market rule to individual inventory items.
b. Prepare the necessary journal entry, assuming the
decline in value was immaterial. (If no entry is required for
a transaction/event, select "No journal entry required" in
the first account field.)
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