Exercise 9-6 (Algo) Lower of cost or market [LO9-1]Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows:TotalTotal NetProductTotal CostReplacement Cost$118,10091,00042,80030,200Realizable Value$129,00096,40064,20032,300$107,300117,80053,70054,000101102103104The normal profit is 30% 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 toindividual products.2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry.X Answer is complete but not entirely correct.Complete this question by entering your answers in the tabs below.Required 1Required 2Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied toindividual products.InventoryValueReplacementNRVNRV - NPMarketProductTotal Costcost Ș118,100$107,300117,80053,70054,00010296,40064,20032,30091,00042,80030,200103104The normal profit is 30% of total cost.Required:1. Determine the carrying value of inventoryet December 31, 2021, assuming the lower of cost or market (LCM) rule is applied toindividual products.2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry.Assessment Tool iFrameX Answer is complete but not entirely correct.Complete this question by entering your answers in the tabs below.Required 1Required 2Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied toindividual products.ReplacementInventoryValueProductTotal CostNRVNRV - NPMarketcost1012$129,0002$118,100107,300$68,600107,30024107,30010296,40091,000117,80088,880 O91,000 O91,00010364,20042,80053,70034,44042,800 O42,80010432,30030,20054,00054,000 X44,310 O32,300Totals$321,900273,400

Lower of cost or market value states that business entity should record the inventory at whichever…

Exercise 9-6 (Algo) Lower of cost or market [LO9-1] Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows: Total Total Net Product Total Cost Replacement Cost $118,100 91,000 42,800 30,200 Realizable Value $129,000 96,400 64,200 32,300 $107,300 117,800 101 102 103 53,700 104 54,000 The normal profit is 30% 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. X Answer is complete but not entirely correct. 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 market (LCM) rule is applied to individual products. Inventory Value Market Replacement cost NRV NRV - NP Product Total Cost

Exercise 9-6 (Algo) Lower of cost or market [LO9-1] Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows: Total Total Net Product Total Cost Replacement Cost $118,100 91,000 42,800 30,200 Realizable Value $129,000 96,400 64,200 32,300 $107,300 117,800 101 102 103 53,700 104 54,000 The normal profit is 30% 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. X Answer is complete but not entirely correct. 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 market (LCM) rule is applied to individual products. Inventory Value Market Replacement cost NRV NRV - NP Product Total Cost

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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TB MC Qu. 05-131 (Algo) A company has the following products... A company has the following products in its ending Inventory. Compute lower of cost or market for inventory applied separately to each product Cost per Market per Unit Unit $ 726 $ 696 $ 526 $ 566 $ 676 $ 701 Product Quantity 10 15 20 Product A Product B Product C
14. Decker Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Product Quantity UnitCost UnitSellingPrice A 1,200 $ 14 $ 20 B 1,000 19 22 C 800 5 10 D 400 9 8 E 800 18 17 The cost to sell for each product consists of a 10 percent sales commission. 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. Determine the carrying value of inventory at December 31, 2021, assuming the LCNRV rule is applied to the entire inventory.3. Assuming inventory write-downs are common for Decker, record any necessary year-end adjusting entry based on the amount calculated in requirement 2.
Tatum Company has four products in its inventory. Information about the Decemnber 31, 2021, Inventory is as follows: Total Net Realizable Value Product 101 Total Cost $134,000 97,000 67,000 37,000 $107,000 117,000 57,000 57,000 102 103 104 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 S. 134,000 107,000 102 97,000 117,000 57,000 67,000 37,000 103 104 57,000 S. 335,000 Required 2 > Prev 1 of 9 Next > Profile (1).pdf Profile.pdf Profile (1) .pdf
Problem 9-2 (Algo) Lower of cost or net realizable value; by product, category, and total Inventory [LO9- 1] Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2021 year-end inventory is as follows: Inventory, by Product Category Tools: Hammers Saws Screwdrivers Paint products: 1-gallon cans Paint brushes Tools: Product Hammers Saws Screwdrivers Total tools Paint products: 1-gallon cans Paint brushes Total paint Total Quantity 110 140 240 $ 440 110 Required: 1. Determine the carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule is applied to (a) individual products. (b) product categories, and (c) total inventory. 2. Assuming inventory write-downs are common for Almaden, record any necessary year-end adjustment amount for each of the LCNRV applications in requirement 1. $ $ Complete this question by entering your answers in the tabs below. Cost Required 1 Required 2 Determine…
Exercise 8-27 (Algo) Dollar-value LIFO [LO8-8] Mercury Company has only one inventory pool. On December 31, 2021, Mercury adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO method was $201,000. Inventory data are as fpllows: Ending Inventory at Year-End Costs Ending Inventory at Year Base Year Costs 2022 $233,100 302,450 $222,000 263,000 253,000 2023 2024 303,600 Required: Compute the inventory at December 31, 2022, 2023, and 2024, using the dollar-value LIFO method. (Round "Year end cost index" to 2 decimal places.) O Answer is not complete. Inventory DVL Cost Inventory Layers Converted to Base Year Cost Inventory Layers Converted to Cost Year- Inventory Layers at Base Year Cost Inventory Layers at Base Year Cost Year- Inventory at Year-End Cost End Cost Index End Cost Index Inventory Layers Converted to Cost Date 12/31/2021 201,000 1 IS 201.000 Base 2$ 201,000 1 %3D 24 201,000 $ 201,000 %3D 12/31/2022 233,100 1.05 2$ 222,000 Base IS…
Tetum Company has four products in its inventory. Information sbout the December 31, 2021, inventory is os follows: Total Net Realizable Value $187,0e0 Product Tatal Cost $134, 000 97,e00 101 102 117,00 57, 0ee 57,080 103 67, e00 37,e00 184 Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net reslizable 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 101 134,000 107,000 102 97,000 117,000 103 67,000 57,000 104 37,000 57,000 335,000
Problem 10-9 (IFRS) Corolla Company incurred the following costs: Materials Storage costs of finished goods Delivery to customers Irrecoverable purchase taxes 700,000 180,000 40,000 60,000 At what amount should the inventory be measured? R. 880,000 b. 760,000 c. 980,000 d. 940,000
Calculate the lowe, st-or-market c (a) Inventory a ACCT101_FEX_2021_2_Male A company reported the following data related to its ending inventory 957 95 95abe be1 3 SR1,100 Product Per Market Total on Hand Unit Cost Total abes 33 Cost 100 SR10 SR1,000 75 5a 18 20 16 95abe18ce 14 1,200 60 1,050 95abe18ce33 14 13 840 40 780 640 800 .ce3 the lower-of-cost-or-market on the: SR3,680 SR3,730 Calculate (a) Inventory as a whole (b) inventory applied separately to each product. 95abe1e 95abe18ce 33 MacBook Pro 95abe F3 000 F4 F5 F6 F7 50 DII & F8 6 7 7 V DD F9 T 8A F10 **** Y Co **** U **** **** O [P1 6E 6. R SA4 II
Exercise 8-14 (Algo) Inventory cost flow methods; perpetual system [LO8-1, 8-4] [The following information applies to the questions displayed below.] Altira Corporation provides the following information related to its inventory during the month of August 2024: August 1 Inventory on hand-2,900 units; cost $7.00 each. August 8 Purchased 14,500 units for $6.40 each. Sold 11,600 units for Purchased 8,700 units August 14 $12.90 each. August 18 for $6.00 each. August 25 Sold 10,600 units for $11.90 each. August 28 Purchased 4,900 units for $5.80 each. August 31 Inventory on hand-8,800 units. Exercise 8-14 (Algo) Part 1 Required: 1. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2024, balance sheet and the cost of goods sold it would report in its August 2024 income statement using the FIFO method. Perpetual FIFO: Beginning Inventory Purchases: August 8 August 18 August 28 Total Cost of Goods Available for Sale…
The cost of Product E sold for the year ended July 31,2021 is: d. P1,350,000 b. P1,440,000 c. P990,000 a. P1,470,000 The cost of ending inventory for Product D is: c. P180,000 b. PP225,000 a. P270,000 d. P540,000 The Gross Profit (Loss) of Product F is: b. P101,250 c. P1,226,250 d. P(483,750) a. P168,750
(ADDITIONAL INFO) Sales 450,000 1,440,000 2,126,250 Ethel uses the estimated net realizable value method to allocate the joint cost. The cost of product E sold for the year ended July 31, 2021 is: a. 1,470,000 b. 1,440,000 c. 990,000 d. 1,350,000 The cost of ending inventory for product D is: a. 270,000 b. 225,000 c. 180,000 d. 540,000 The gross profit (loss) of product F is: a. 168,750 b. 101,250 c. 1,226,250 d. (483,750)
Splish Brothers, Inc. values its inventory at the lower-of-LIFO-cost-or-market. The following information is available from the company’s inventory records as of December 31, 2020. Item Quantity UnitCost ReplacementCost/Unit Estimated SellingPrice/Unit Completion & DisposalCost/Unit Normal ProfitMargin/Unit X490 8,976 $11.00 $10.52 $12.32 $2.64 $2.99 X512 4,356 6.16 6.60 7.83 0.22 1.58 X682 15,840 16.72 16.37 27.76 2.86 7.92 Z195 11,000 12.54 12.32 17.42 1.23 5.06 Z846 7,568 10.56 11.22 12.28 1.85 0.97 (a) Correct answer icon Your answer is correct. Calculate the lower-of-cost-or-market using the individual-item approach. (Round answers to 2 decimal places, e.g. 52.75.) (b) Partially correct answer icon Your answer is partially correct. Show the journal entries Splish Brothers, Inc. will…