Monty Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company's inventory records as of December 31, 2025. Estimated Item Quantity Unit Cost Replacement Cost/Unit Selling Price/Unit Completion & Disposal Cost/Unit Normal Profit Margin/Unit A 1,400 $7.73 $8.65 $10.82 $1.55 $1.85 B 1,100 8.45 8.14 9.68 0.93 1.24 C 1,300 5.77 5.56 7.42 1.18 0.62 D 1,300 3.91 4.33 6.49 0.82 1.55 E 1,700 6.59 6.49 6.90 0.72 1.03 Greg Forda is an accounting clerk in the accounting department of Monty Co., and he cannot understand why the market value keeps changing from replacement cost to net realizable value to something that he cannot even figure out. Greg is very confused, and he is the one who records inventory purchases and calculates ending inventory. You are the manager of the department and an accountant. Calculate the lower-of-cost-or-market using the individual-item approach. (Round answers to 2 decimal places, e.g. 78.73.) Lower-of-Cost-or-Market (Per unit basis) Item A $ Item B $ Item C $ Item D $ Item E $ eTextbook and Media List of Accounts Show the journal entry he will need to make in order to write down the ending inventory from cost to market. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Cost of Goods sold Method: Debit Credit Loss method:

Sheffield Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Item No.   Quantity   Cost per Unit   Cost to Replace   Estimated Selling Price   Cost of Completion and Disposal   Normal Profit 1320   1,300     $3.74     $3.51     $5.27     $0.41     $1.46   1333   1,000     3.16     2.69     4.10     0.59     0.59   1426   900     5.27     4.33     5.85     0.47     1.17   1437   1,100     4.21     3.63     3.74     0.29     1.05   1510   800     2.63     2.34     3.80     0.94     0.70   1522   600     3.51     3.16     4.45     0.47     0.59   1573   3,100     2.11     1.87     2.93     0.88     0.59   1626   1,100     5.50     6.08     7.02     0.59     1.17   From the information above, determine the amount of Sheffield Company inventory. The amount of Sheffield Company’s inventory

Valuing Inventory at Lower-of-Cost-or-Market Management of Tarry Company takes the position that under the lower-of-cost-or-market rule, the two items below are reported in ending inventory at $119,520 (total). Inventory cost is reported using LIFO. • Edgers: 2,160 in inventory; cost is $22 each; replacement cost is $16 each; estimated sale price is $30 each; estimated distribution cost is $3 each; and normal profit is 10% of sale price. • Hedge clippers: 1,440 in inventory; cost is $50 each; replacement cost is $36 each; estimated sale price is $90 each; estimated distribution cost is $28 each; and normal profit is 20% of sale price. a. Compute your inventory valuation by item and in total for the Tarry Company inventory reported above. Inventory valuation for edgers $ Inventory valuation for hedge clippers Total inventory valuation b. Prepare the entry, if any, to report inventory at the lower-of-cost-or-market. Assume that all adjustments directly impact cost of goods sold and…

ane Help Tatum Company has four products in Its inventory. Information about the December 31, 2021, inventory is as follows: Product 101 102 103 104 Total Cost $134,000 97,000 67,000 37,000 Total Net Realizable Value $107,000 117,000 57,000 57,000 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 101 134,000 $ 107,000 97,000 117,000 102 67,000 57,000 103 57,000 37,000 335,000 104 0. S. Required 2 > Next > Prev 1.of 9 %24 %24

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Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows: Total Net Product Total Cst Realizable Value 101 102 $148,000 104,000 74,000 $114,000 124,000 64,000 64,000 103 104 44,000 Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. 2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. Inventory Value Product Cost NRV 101 2$ 148,000 114,000 $114,000 102 104,000 124,000 104,000 103 74,000 64,000 66,000 X 104 44,000 64,000 44,000 370,000 $ 328,000

Determine the ending inventory amount by applying the lower of cost or market value to a. Each inventory item of inventoryb. Total inventory The following data refer to Froning Company’s ending inventoryItem Code,  Quantity,  Unit  Cost,  Unit MarketLXC               60             $45             $48KMT              210           $38             $34MOR              300          $22             $20NES                100          $27              $32

Valuing Inventory at Lower of Cost or Market Management of Tarry Company reports the following inventory using LIFO and applies the lower of cost or market rule. ■ Edgers: 1,680 units in inventory; cost is $22 each; replacement cost is $16 each; estimated sale price is $30 each; estimated distribution cost is $3 each; and normal profit is 10% of sale price. ■Clippers: 1,120 units in inventory; cost is $50 each; replacement cost is $36 each; estimated sale price is $90 each; estimated distribution cost is $28 each; and normal profit is 20% of sale price. Required a. Determine the inventory cost to report on the balance sheet assuming that the company applies the lower of cost or market rule to each inventory item. b. Prepare the journal entry to apply the lower of cost or market rule to inventory assuming that the company adjusts inventory directly and adjusts equity through cost of goods sold. a. Inventory valuation for edgers $ Inventory valuation for clippers Total inventory…