Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.View transaction listJournal entry worksheetRecord any necessary year-end adjusting entry assuming that inventory write-downs are common for Tatum Company.Note: Enter debits before credits.Transaction1Record entryGeneral JournalClear entryDebitCreditView general journal Tatum Company has four products in its inventory. Information about ending inventory is as follows:Total ReplacementCost$Total NetRealizable Value$ 138,300151,000152,300116,60054,80069,50039,40070,800Product Total Cost101$ 167,000123,60082,20042,100The normal profit is 20% of total cost.102103104Required:1. Determine the carrying value of inventory assuming the lower of cost or market (LCM) 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 2Determine the carrying value of inventory assuming the lower of cost or market (LCM) rule is applied to individual products.ReplacementcostProduct101102103104TotalsTotal Cost$$167.000 $ 152,300 $123,600116,60082,20054,80042,10039,400414,900NRV138,300151,00069,50070,800NRV minus NPMarketInventory Value

Inventory includes all the items, merchandise, and raw materials that are used by the business…

Tatum Company has four products in its inventory. Information about ending inventory is as follows: Total Replacement Cost $152,300 116,600 54,800 39,400 Total Net Realizable Value $ 138,300 151,000 69,500 70,800 Product Total Cost 101 102 $ 167,000 123,600 82,200 42,100 The normal profit is 20% of total cost. 103 104 Required: 1. Determine the carrying value of inventory assuming the lower of cost or market (LCM) 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 assuming the lower of cost or market (LCM) rule is applied to individual products. Replacement cost Product 101 102 103 104 Totals Total Cost $ 167,000 $ 123,600 82,200 42,100 414.900 $ 152,300 $ 116,600 54,800 39.400 NRV 138,300 151,000 69,500 70,800 NRV minus NP Inventory Value

Tatum Company has four products in its inventory. Information about ending inventory is as follows: Total Replacement Cost $152,300 116,600 54,800 39,400 Total Net Realizable Value $ 138,300 151,000 69,500 70,800 Product Total Cost 101 102 $ 167,000 123,600 82,200 42,100 The normal profit is 20% of total cost. 103 104 Required: 1. Determine the carrying value of inventory assuming the lower of cost or market (LCM) 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 assuming the lower of cost or market (LCM) rule is applied to individual products. Replacement cost Product 101 102 103 104 Totals Total Cost $ 167,000 $ 123,600 82,200 42,100 414.900 $ 152,300 $ 116,600 54,800 39.400 NRV 138,300 151,000 69,500 70,800 NRV minus NP Inventory Value

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 2RE: Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net...

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