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Tatum Company has four products in its inventory. Information about ending inventory is as follows: Total Net Realizable Value Total Replacement Product Total Cost 101 $ 124,000 Cost $ 113,600 $ 103,200 102 92,800 87,600 113,400 103 61,800 104 31,000 41,200 29,000 51,600 51,800 The normal profit is 20% of total cost. Required: 1. Determine the carrying value of inventory assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the carrying value of inventory assuming the lower of cost or market (LCM) rule is applied to individual products. Replacement Product Total Cost NRV NRV minus NP Market cost Inventory Value 101 $ 124,000 $ 113,600 $ 103,200 102 92,800 87,600 113,400 103 61,800 41,200 51,600 104 31,000 29,000 51,800 Totals $ 309,600 S 0

Tatum Company has four products in its inventory. Information about ending inventory is as follows: Total Net Realizable Value Total Replacement Product Total Cost 101 $ 124,000 Cost $ 113,600 $ 103,200 102 92,800 87,600 113,400 103 61,800 104 31,000 41,200 29,000 51,600 51,800 The normal profit is 20% of total cost. Required: 1. Determine the carrying value of inventory assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the carrying value of inventory assuming the lower of cost or market (LCM) rule is applied to individual products. Replacement Product Total Cost NRV NRV minus NP Market cost Inventory Value 101 $ 124,000 $ 113,600 $ 103,200 102 92,800 87,600 113,400 103 61,800 41,200 51,600 104 31,000 29,000 51,800 Totals $ 309,600 S 0

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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Tatum Company has four products in its inventory. Information about ending inventory is as follows: Total Net Realizable Value Total Replacement Product Total Cost 101 $ 124,000 Cost $ 113,600 $ 103,200 102 92,800 87,600 113,400 103 61,800 104 31,000 41,200 29,000 51,600 51,800 The normal profit is 20% of total cost. Required: 1. Determine the carrying value of inventory assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the carrying value of inventory assuming the lower of cost or market (LCM) rule is applied to individual products. Replacement Product Total Cost NRV NRV minus NP Market cost Inventory Value 101 $ 124,000 $ 113,600 $ 103,200 102 92,800 87,600 113,400 103 61,800 41,200 51,600 104 31,000 29,000 51,800 Totals $ 309,600 S 0 <Required 1 Required 2 >
Transcribed Image Text:Tatum Company has four products in its inventory. Information about ending inventory is as follows: Total Net Realizable Value Total Replacement Product Total Cost 101 $ 124,000 Cost $ 113,600 $ 103,200 102 92,800 87,600 113,400 103 61,800 104 31,000 41,200 29,000 51,600 51,800 The normal profit is 20% of total cost. Required: 1. Determine the carrying value of inventory assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the carrying value of inventory assuming the lower of cost or market (LCM) rule is applied to individual products. Replacement Product Total Cost NRV NRV minus NP Market cost Inventory Value 101 $ 124,000 $ 113,600 $ 103,200 102 92,800 87,600 113,400 103 61,800 41,200 51,600 104 31,000 29,000 51,800 Totals $ 309,600 S 0 <Required 1 Required 2 >
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