Answer full question and all parts. ### Hagen Metal Work's Ending Inventory Evaluation#### Inventory DetailsThe following information pertains to Hagen Metal Work's ending inventory for the current year:| Item | Quantity | Unit Cost | Unit Market Value ||------|----------|-----------|------------------|| C | 150 | $14 | $12 || D | 140 | 16 | 14 || K | 48 | 12 | 13 || M | 29 | 9 | 14 |#### Required **a. Determine the value of the ending inventory using the lower-of-cost-or-market rule applied to:**1. Each individual inventory item.2. The inventory in aggregate.| Ending Inventory | ||----------------------------|---------------------|| Individual item method | || Aggregate method | |**b. Prepare any necessary journal entries, assuming the decline in value is immaterial, using:**1. The individual method and 2. The aggregate method.Hagen Metal Works uses the perpetual inventory system. *(Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)*

a) Inventory is valued at lower of cost or market value under least of cost or market rule (LCM).…

Answered: Work's ending inventory for th Unit…

Business

Accounting

Work's ending inventory for th Unit Quantity 150 140 48 29 Unit Market Value $ 12 14 13 Cost 12 14 4629

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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Question

Answer full question and all parts.

### Hagen Metal Work's Ending Inventory Evaluation

#### Inventory Details

The following information pertains to Hagen Metal Work's ending inventory for the current year:

| Item | Quantity | Unit Cost | Unit Market Value |
|------|----------|-----------|------------------|
| C | 150 | $14 | $12 |
| D | 140 | 16 | 14 |
| K | 48 | 12 | 13 |
| M | 29 | 9 | 14 |

#### Required

**a. Determine the value of the ending inventory using the lower-of-cost-or-market rule applied to:**

1. Each individual inventory item.
2. The inventory in aggregate.

| Ending Inventory | |
|----------------------------|---------------------|
| Individual item method | |
| Aggregate method | |

**b. Prepare any necessary journal entries, assuming the decline in value is immaterial, using:**

1. The individual method and
2. The aggregate method.

Hagen Metal Works uses the perpetual inventory system.

*(Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)*

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