Forest Company has five products in its inventory. Information about ending inventory follows. Unit Replacement Unit Selling Cost $ 21 20 11 Product A B C D E Quantity 900 800 1,000 500 800 Unit Cost $19 24 12 16 23 13 21 Price $25 27 17 15 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: 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.

Forest Company has five products in its inventory. Information about ending inventory follows. Unit Replacement Unit Selling Cost $ 21 20 11 Product A B C D E Quantity 900 800 1,000 500 800 Unit Cost $19 24 12 16 23 13 21 Price $25 27 17 15 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: 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.

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. 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.
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 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.
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.
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
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n The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Product A B C D E Product Cost $ 58 98 ADCOE 58 118 А 38 Selling costs consist of a sales commission equal to 15% of selling price and shipping costs equal to 5% of cost. The normal profit is 40% of selling price. Per Unit Replacement Cost Required: What unit value should Royal Decking use for each of its products when applying the lower of cost or market (LCM) rule to units of ending inventory? Note: Do not round intermediate calculations. Round final answers to 2 decimal places. $ 53 88 73 88 46 Cost Replacement. cost Selling Price $ 78 118 98 148 48 $ 58 $ 98 58 118 38 53 88 73 88 46 NRV NRV minus NP Market 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
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…
Han Company has three products in its ending inventory. Specific per unit data at the end of the year for each of the products are as follows: Cost Selling price Costs to sell Product 1 Product 2 Product 3 $ 25 $ 55 55 85 5 15 Product Cost 1 2 3 Required: What unit values should Han use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule to ending inventory? $.95 135 50 NRV Per Unit Inventory Value A fire destroyed a warehouse of the Goren Group, Incorporated, on May 4, 2024. Accounting records on that date indicated the following: Estimated loss from fire Merchandise inventory, January 1, 2024 Purchases to date Freight-in Sales to date $ 1,970,000 5,870,000 470,000 8,900,000 The gross profit ratio has averaged 20% of sales for the past four years. Required: Use the gross profit method to estimate the cost of the inventory destroyed in the fire.
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