Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows: Total Replecenent Cost $129,800 99,900 47,000 33,300 Total Net Realizable Value $118,000 129,300 59,200 59,700 Product Total Cost $142,000 105,see 78,500 35,700 101 102 103 104 The normal profit is 20% of total cost. Required: 1. Determine the carrying value of inventory at December 31, 2021, 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.

Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows: Total Replecenent Cost $129,800 99,900 47,000 33,300 Total Net Realizable Value $118,000 129,300 59,200 59,700 Product Total Cost $142,000 105,see 78,500 35,700 101 102 103 104 The normal profit is 20% of total cost. Required: 1. Determine the carrying value of inventory at December 31, 2021, 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.

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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A3
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N5. Account
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