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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Given the following percentage costs of carrying inventory, calculate the annual carrying cost if the average inventory is $1 million. Capital costs are 10%, storage costsare 6%, and risk costs are 9%.
Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows: Product Total Cost Total NetRealizable Value 101 $ 120,000 $ 100,000 102 90,000 110,000 103 60,000 50,000 104 30,000 50,000 Required:1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. Product Cost NRV Inventory Value 101 $120,000 $100,000 102 90,000 110,000 103 60,000 50,000 104 30,000 50,000 $300,000 2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting journal entry.
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ane Help Tatum Company has four products in Its inventory. Information about the December 31, 2021, inventory is as follows: Product 101 102 103 104 Total Cost $134,000 97,000 67,000 37,000 Total Net Realizable Value $107,000 117,000 57,000 57,000 Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) 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 at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) rule is applied to Individual products. Inventory Value Product Cost NRV 101 134,000 $ 107,000 97,000 117,000 102 67,000 57,000 103 57,000 37,000 335,000 104 0. S. Required 2 > Next > Prev 1.of 9 %24 %24
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How much is the total inventory value at December 31, 2019?