RSA Corporation had the following items in inventory as at December 31, 2023: Item No. A1 B4 C2 D3 Quantity 100 (a1) 120 140 160 Unit Cost $3.00 2.00 8.00 7.00 NRV $3.30 1.90 9.00 6.80 Assume that RSA uses a perpetual inventory system, and that none of the inventory items can be grouped together for accounting purposes. Prepare the year-end adjusting entry required to adjust to the lower of cost or net realizable value on an item-by-item basis using direct method (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is

RSA Corporation had the following items in inventory as at December 31, 2023: Item No. A1 B4 C2 D3 Quantity 100 (a1) 120 140 160 Unit Cost $3.00 2.00 8.00 7.00 NRV $3.30 1.90 9.00 6.80 Assume that RSA uses a perpetual inventory system, and that none of the inventory items can be grouped together for accounting purposes. Prepare the year-end adjusting entry required to adjust to the lower of cost or net realizable value on an item-by-item basis using direct method (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is

Name: RSA Corporation had the following items in inventory as at December 3
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Description: RSA Corporation had the following items in inventory as at December 31, 2023:Item No.A1B4C2D3Quantity(a1)100120140160UnitCost$3.002.008.007.00NRV$3.301.909.006.80Assume that RSA uses a perpetual inventory system, and that none of the inventory items

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 4E: Inventory Write-Down The following information for Tuell Company is available: Required: 1. Assume...

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Cullumber Corporation had the following items in inventory as at December 31, 2020: Item No. Quantity UnitCost NRV A1 140 $3.00 $3.10 B4 120 1.50 0.90 C2 190 9.20 10.40 D3 130 6.60 6.10 Assume that Cullumber uses a periodic inventory system, and that none of the inventory items can be grouped together for accounting purposes. The opening inventory on January 1, 2020, was $3,200 in total. 1. Prepare the year-end adjusting entries required to adjust to the lower of cost or net realizable value using the direct method. 2. Prepare the year-end adjusting entries required to adjust to the lower of cost or net realizable value using the indirect method.
Cullumber Corporation had the following items in inventory as at December 31, 2020: Item No. Quantity UnitCost NRV A1 140 $3.00 $3.10 B4 120 1.50 0.90 C2 190 9.20 10.40 D3 130 6.60 6.10 Assume that Cullumber uses a periodic inventory system, and that none of the inventory items can be grouped together for accounting purposes. The opening inventory on January 1, 2020, was $3,200 in total. 1. Prepare the year-end adjusting entries required to adjust to the lower of cost or net realizable value using the direct method. A. Dec.31.2020 (To transfer out beginning inventory balance) B. Dec.31.2020 (To record ending inventory at LC and NRV) 2. Prepare the year-end adjusting entries required to adjust to the lower of cost or net realizable value using the indirect method. a) Dec.31.202 To transfer out beginning inventory balance) B) Dec.31.202To record ending inventory at cost c) Dec.31.202 To…
Cullumber Corporation had the following items in inventory as at December 31, 2020: Item No. Quantity UnitCost NRV A1 140 $3.00 $3.10 B4 120 1.50 0.90 C2 190 9.20 10.40 D3 130 6.60 6.10 Assume that Cullumber uses a periodic inventory system, and that none of the inventory items can be grouped together for accounting purposes. The opening inventory on January 1, 2020, was $3,200 in total. Prepare the year-end adjusting entries required to adjust to the lower of cost or net realizable value using the direct method. (Credit account titles are automatically indented when the 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.)Direct Method: Date Account Titles and Explanation Debit Credit December 31, 2020 (To transfer out beginning inventory balance) December 31, 2020…
Oriole Corporation had the following items in inventory as at December 31, 2020: Item No. Quantity UnitCost NRV A1 180 $2.90 $2.90 B4 140 1.40 0.50 C2 220 9.10 10.60 D3 90 6.60 6.50 Assume that Oriole uses a periodic inventory system, and that none of the inventory items can be grouped together for accounting purposes. The opening inventory on January 1, 2020, was $3,200 in total. Prepare the year-end adjusting entries required to adjust to the lower of cost or net realizable value using the direct method. (Credit account titles are automatically indented when the 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.)Direct Method: Date Account Titles and Explanation Debit Credit December 31, 2020 (To transfer out beginning inventory balance) December 31, 2020…
Crane Ltd. had the following items in inventory as at December 31, 2024: Item No. Quantity Unit Cost NRV དྷྭ སྒྲ སཱུ སྦ 340 $4.00 $4.30 370 3.00 2.90 380 8.00 9.00 400 7.00 6.80 Assume that Crane uses a perpetual inventory system. Fill in the table below for the lower of cost and net realizable value per unit, the inventory dollar amount at the lower of cost and net realizable value, and the dollar amount of the inventory at cost. ntity Unit Cost NRV Unit LC & NRV 340 $4.00 $4.30 S 370 3.00 2.90 Dollar LC & NRV 4.00 $ 2.90 1360 1073 380 8.00 9.00 8.00 3040 400 7.00 6.80 6.80 2720 Dollar Cost 1360 1110 3040 2800 $ 8193 $ 8310 Prepare any necessary adjusting entry at December 31, 2024. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry) Account Titles Debit Credit
Sandhill Corporation had the following items in inventory as at December 31, 2023: Item No. A1 B4 C2 D3 Quantity 110 110 160 120 Unit Cost $3.40 2.00 8.40 7.60 NRV $3.90 1.40 10.10 7.50 Assume that Sandhill uses a periodic inventory system, and that none of the inventory items can be grouped together for accounting purposes. The opening inventory on January 1, 2023, was $3,200 in total.
Which of the following items will be included in the inventory note?Itrading inventory of R58900 II trading inventory of R62490 III stationary on hand R60 IV Stationary expense A.i and ii B.ii and iv C.ii and iii D.All of the above
Required: Answer the following independent questions and show all computations supporting your answers. a) Assume that the company uses the FIFO method. The value of the ending inventory atDecember 31 is $__________. b) Assume that the company uses the LIFO method. The value of the ending inventory onDecember 31 is $__________.c) Determine the difference in the amount of income that the company would have reported if ithad used the FIFO method instead of the LIFO method. Would income have been greater orless? Which method would provide more tax advantage? -Explain your rationale.
JBD, Inc. has the following information pertaining to it 2025 ending inventory. Requirements: Calculate the value of ending inventory using the following methods: LCM for each individual inventory item LCM for aggregated inventory. Record any necessary journal entries for each of the above methods, assuming the amount is material. Explain the purpose of applying the LCM rule to inventory Item Quantity Cost per Each Market Cost per Each Records Market LCM Each LCM Total R55 300 10 7.5 S49 150 15 12 T21 350 8 6 E33 600 33 35 Date Account Debit Credit
Deere and Company reported inventory in its balancesheet as follows.Inventories $1,999,100,000What additional disclosures might be necessary to presentthe inventory fairly?
Deere and Company reported inventory in its balance sheet as follows. Inventories00000000000$1,999,100,000 What additional disclosures might be necessary to present the inventory fairly?
Which of the following items will be included in the inventory note? I. Trading inventory of R58 900 II. Trading inventory of R62 490 III. Stationery on hand of R60 IV. Stationery expense of R390 OA. (ii) and (iv) B. All of the above. OC. (i) and (ii) OD. (ii) and (iii)