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

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

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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### 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.)*
Transcribed Image Text:### 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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