None Forest Company has five products in its Inventory. Information about ending inventory follows.ProductAQuantity700Unit CostUnit ReplacementCost$ 21$ 23B1,0002622с9001413D600E50018251523Unit sellingPrice$ 2729191724The cost to sell for each product consists of a 20 percent sales commission. The normal profit for each product is 40 percent of theselling price.Required:1. Determine the carrying value of ending inventory, assuming the lower of cost or market (LCM) rule is applied to individualproducts.2. Determine the carrying value of Inventory, assuming the LCM rule is applied to the entire inventory.3. Assuming Inventory write-downs are common for Forest, record any necessary year-end adjusting entry based on the amountcalculated in requirement 2Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3Determine the carrying value of ending inventory, assuming the lower of cost or market (LCM) rule is applied to individualproducts.Note: Do not round intermediate calculations.Product(units)A(700)B (1,000)C (900)D (600)E(500)RCNRVNRV minus NPMarketCostInventoryvalueTotal< Required 1S0 SRequired 2 >0$0

By comparing the product cost and market value, the inventory valuation approach known as the LCM…

Forest Company has five products in its Inventory. Information about ending inventory follows. Unit Replacement Product Quantity Unit Cost 21 Unit selling Price 27 13 15 19 17 TTTTT 14 The cost to sell for each product consists of a 20 percent sales commission. The normal profit for each product is 40 percent of the selling price.

Forest Company has five products in its Inventory. Information about ending inventory follows. Unit Replacement Product Quantity Unit Cost 21 Unit selling Price 27 13 15 19 17 TTTTT 14 The cost to sell for each product consists of a 20 percent sales commission. The normal profit for each product is 40 percent of the selling price.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 2RE: Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net...

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Forest Company has five products in its inventory. Information about ending inventory follows. Unit Replacement Unit Selling Cost Price $ 21 $ 25 20 27 17 15 22 Product Quantity A 900 B 800 C D E 1,000 500 800 Unit Cost $19 24 12 16 23 The cost to sell for each product consists of a 15 percent sales commission. The normal profit for each product is 25 percent of the selling price. Required: 1. Determine the carrying value of ending inventory, assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Determine the carrying value of inventory, assuming the LCM rule is applied to the entire inventory. 3. Assuming inventory write-downs are common for Forest, record any necessary year-end adjusting entry based on the amount calculated in requirement 2. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Product (units) A (900) B (800) C (1,000) D (500) E (800) 11 13 21 Determine the carrying value of ending…
Forest Company has five products in its inventory. Information about ending inventory follows. Product Quantity Unit Cost Unit Replacement Cost Unit Selling Price A 900 $ 19 $ 21 $ 25 B 800 24 20 27 C 1,000 12 11 17 D 500 16 13 15 E 800 23 21 22 The cost to sell for each product consists of a 15 percent sales commission. The normal profit for each product is 25 percent of the selling price. Required: Determine the carrying value of ending inventory, assuming the lower of cost or market (LCM) rule is applied to individual products. Determine the carrying value of inventory, assuming the LCM rule is applied to the entire inventory. Assuming inventory write-downs are common for Forest, record any necessary year-end adjusting entry based on the amount calculated in requirement 2.
Forest Company has five products in its inventory. Information about ending inventory follows. Product Quantity Unit Cost A 1,000 B 800 с 600 D 200 E 600 $ 10 15 3 7 14 Unit Replacement Unit Selling Cost Price $ 16 18 8 6 13 $ 12 11 2 4 12 The cost to sell for each product consists of a 15 percent sales commission. The normal profit for each product is 40 percent of the selling price. Required: 1. Determine the carrying value of ending inventory, assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Determine the carrying value of inventory, assuming the LCM rule is applied to the entire inventory. 3. Assuming inventory write-downs are common for Forest, record any necessary year-end adjusting entry based on the amount calculated in requirement 2.
Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Product Quantity UnitCost UnitReplacementCost UnitSellingPrice A 600 $ 30 $ 32 $ 36 B 1,000 35 31 38 C 900 23 22 28 D 800 27 24 26 E 700 34 32 33 The cost to sell for each product consists of a 10 percent sales commission. The normal profit for each product is 25 percent of the selling price.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. Determine the carrying value of inventory at December 31, 2021, assuming the LCM rule is applied to the entire inventory.3. Assuming inventory write-downs are common for Forester, record any necessary year-end adjusting entry based on the amount calculated in requirement 2.
Forest Company has five products in its inventory. Information about ending inventory follows. Product Quantity Unit Cost Unit Replacement Cost Unit Selling Price A 600 $ 12 $ 14 $ 18 B 1,000 17 13 20 C 600 5 4 10 D 600 9 6 8 E 600 16 14 15 The cost to sell for each product consists of a 10 percent sales commission. The normal profit for each product is 25 percent of the selling price. Required: Determine the carrying value of ending inventory, assuming the lower of cost or market (LCM) rule is applied to individual products. Determine the carrying value of inventory, assuming the LCM rule is applied to the entire inventory. Assuming inventory write-downs are common for Forest, record any necessary year-end adjusting entry based on the amount calculated in requirement 2. Determine the carrying value of ending inventory, assuming the lower of cost or market (LCM) rule is applied to individual products.
Forest Company has five products in its inventory. Information about ending inventory follows. Unit Replacement Unit Selling Cost Price $ 16 18 8 6 13 Product Quantity 1,000 ABCDE 800 600 200 600 Unit Cost $ 10 15 3 7 14 $ 12 11 2 4 12 The cost to sell for each product consists of a 15 percent sales commission. The normal profit for each product is 40 percent of the selling price. Required: 1. Determine the carrying value of ending inventory, assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Determine the carrying value of inventory, assuming the LCM rule is applied to the entire inventory. 3. Assuming inventory write-downs are common for Forest, record any necessary year-end adjusting entry based on the amount calculated in requirement 2.
Decker Company has five products in its inventory. Information about ending inventory follows. Unit Unit Selling Cost Product ABCDE Quantity 1,250 1,050 850 450 850 $ 23 29 5 12 28 Price The cost to sell for each product consists of a 10 percent sales commission. Required: 1. Determine the carrying value of ending inventory, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. $ 30 32 13 11 27 2. Determine the carrying value of ending inventory, 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. View transaction list Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assuming inventory write-downs are common for Decker, record any necessary year-end adjusting entry based on the amount calculated in requirement 2. Note: If no entry is…
Forest Company has five products in its inventory. Information about ending inventory follows. Product Quantity Unit Cost Unit Replacement Cost Unit Selling Price A 500 $ 18 $ 20 $ 24 B 800 23 19 26 C 700 11 10 16 D 800 15 12 14 E 700 22 20 21 The cost to sell for each product consists of a 10 percent sales commission. The normal profit for each product is 40 percent of the selling price. Required: Determine the carrying value of ending inventory, assuming the lower of cost or market (LCM) rule is applied to individual products. Determine the carrying value of inventory, assuming the LCM rule is applied to the entire inventory. Assuming inventory write-downs are common for Forest, record any necessary year-end adjusting entry based on the amount.
Decker Company has five products in its inventory. Information about ending inventory follows. Unit Product Quantity Cost $ A 1,100 30 35 4 11 34 The cost to sell for each product consists of a 10 percent sales commission. BCP с D E 900 800 400 800 1. Determine the carrying value of ending inventory, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. 2. Determine the carrying value of ending inventory, 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. Complete this question by entering your answers in the tabs below. Product Unit Selling Price $36 38 12 10 33 Required 1 Required 2 Required 3 Determine the carrying value of ending inventory, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. Note: Do not round intermediate…
Forest Company has tive products in its inventory. Information about ending inventory follows. Product Quantity Cost $ A 900 29 34 22 BC с D E 900 900 900 1,000 Lea Unit Unit Unit Replacement Selling Cost Price 26 33 Required 1 Product (units) A (900) B (900) C/900) $ 31 30 21 The cost to sell for each product consists of a 20 percent sales commission. The normal profit for each product is 40 percent of the selling price. Required 2 Required 3 RC 0131 223 23 1. Determine the carrying value of ending inventory, assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Determine the carrying value of inventory, assuming the LCM rule is applied to the entire inventory. 31 3. Assuming inventory write-downs are common for Forest, record any necessary year- end adjusting entry based on the amount calculated in requirement 2. NRV Complete this question by entering your answers in the tabs below. 57223 $35 Determine the carrying value of ending inventory, assuming…
The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Product ABCDE Cost $ 90 130 90 55 20 Product Per Unit Costs to sell consist of a sales commission equal to 10% of selling price and shipping costs equal to 10% of cost. A B с D E Required: What unit value should Royal Decking use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule to units of ending inventory? Selling Price $ 120 160 130 85 30 Cost NRV Per Unit Inventory Value
Tatum Company has four products in its inventory. Information about ending inventory is as follows: Total Replacement Cost $ Total Net Realizable Value $ 138,300 151,000 152,300 116,600 54,800 69,500 39,400 70,800 Product Total Cost 101 $ 167,000 123,600 82,200 42,100 The normal profit is 20% of total cost. 102 103 104 Required: 1. Determine the carrying value of inventory 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the carrying value of inventory assuming the lower of cost or market (LCM) rule is applied to individual products. Replacement cost Product 101 102 103 104 Totals Total Cost $ $ 167.000 $ 152,300 $ 123,600 116,600 82,200 54,800 42,100 39,400 414,900 NRV 138,300 151,000 69,500 70,800 NRV minus NP Market Inventory Value