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.
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.
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
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 2MC: The following items were included in Venicio Corporations inventory account on December 31, 2019:...
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Transcribed Image Text: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.
Transcribed Image Text: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 O for the amounts. List all debit entries before credit entries.)
Account Titles and Explanation
Cost of Goods Sold
Inventory
(To transfer out beginning inventory balance)
Loss on Inventory Due to Decline in NRV
Allowance to Reduce Inventory to NRV
(To record ending inventory at LC and NRV)
Debit
Credit
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