Tatum Company has four products In Its Inventory. Informetion about the December 31, 2018, Inventory is as follows 101 102 103 104 $163,000 120,800 80,400 41,100 $148,700 114,000 $135,100 147,600 67.900 69,000 38,400 The normal gross profit percentage Is 40% of total cost. Requlred: 1. Determine the carrying value of Inventory at December 31, 2018, assuming the lower of cost or market (LCM) rule is applled 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. Informetion about the December 31, 2018, Inventory is as follows 101 102 103 104 $163,000 120,800 80,400 41,100 $148,700 114,000 $135,100 147,600 67.900 69,000 38,400 The normal gross profit percentage Is 40% of total cost. Requlred: 1. Determine the carrying value of Inventory at December 31, 2018, assuming the lower of cost or market (LCM) rule is applled 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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