Prepare the journal entry for the inventory write-down using the LCM, net realizable method Company A is preparing their annual financial statements dated December 31, 20X1. Ending inventory is presently recorded at its total cost of $5,465. Information about its inventory item is as follows: Product Line Quantity on Unit Cost When Value at Year-End Hand Acquired (FIFO) Product A 20 12 $ 14 Product B 75 40 38 Product C 35 55 50 Product D 10 30 35
Prepare the journal entry for the inventory write-down using the LCM, net realizable method Company A is preparing their annual financial statements dated December 31, 20X1. Ending inventory is presently recorded at its total cost of $5,465. Information about its inventory item is as follows: Product Line Quantity on Unit Cost When Value at Year-End Hand Acquired (FIFO) Product A 20 12 $ 14 Product B 75 40 38 Product C 35 55 50 Product D 10 30 35
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter6: Receivables And Inventories
Section: Chapter Questions
Problem 6.4.1P: Inventory by three cost flow methods Details regarding the inventory of appliances on January 1,...
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