Tatum Company has four products in its inventory. Information about ending inventory is as follows: Product Total Cost Total Replacement Cost Total Net Realizable Value 101 $ 134,000 $ 122,600 S 111,400 102 100,000 94,400 122,200 103 66,600 44,400 55,800 104 33,600 31,400 56,200 The normal profit is 25% of total cost. Required: Determine the carrying value of inventory assuming the lower of cost or market (LCM) rule is applied to individual products. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry. • Required 1 • Required 2 Determine the carrying value of inventory assuming the lower of cost or market (LCM) rule is applied to individual products. ProductTotal Cost Replacement costNRVNRV minus NPMarketInventory Value101$134,000$122,600S111,400 102100,00094,400122,200 10366,60044,40055,800 10433,60031,40056,200 Totals$334,200 SO

Tatum Company has four products in its inventory. Information about ending inventory is as follows: Product Total Cost Total Replacement Cost Total Net Realizable Value 101 $ 134,000 $ 122,600 S 111,400 102 100,000 94,400 122,200 103 66,600 44,400 55,800 104 33,600 31,400 56,200 The normal profit is 25% of total cost. Required: Determine the carrying value of inventory assuming the lower of cost or market (LCM) rule is applied to individual products. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry. • Required 1 • Required 2 Determine the carrying value of inventory assuming the lower of cost or market (LCM) rule is applied to individual products. ProductTotal Cost Replacement costNRVNRV minus NPMarketInventory Value101$134,000$122,600S111,400 102100,00094,400122,200 10366,60044,40055,800 10433,60031,40056,200 Totals$334,200 SO

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 2MC: Moore Company uses the LIFO cost flow assumption and carries Product A in inventory on December 31,...

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