14. Decker Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Product Quantity Unit Cost Unit Selling Price A 1,200 $ 14 $ 20 B 1,000 19 22 C 800 5 10 D 400 9 8 E 800 18 17 The cost to sell for each product consists of a 10 percent sales commission. Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. 2. Determine the carrying value of inventory at December 31, 2021, assuming the LCNRV rule is applied to the entire inventory. 3. Assuming inventory write-downs are common for Decker, record any necessary year-end adjusting entry based on the amount calculated in requirement 2.
14. Decker Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Product Quantity Unit Cost Unit Selling Price A 1,200 $ 14 $ 20 B 1,000 19 22 C 800 5 10 D 400 9 8 E 800 18 17 The cost to sell for each product consists of a 10 percent sales commission. Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. 2. Determine the carrying value of inventory at December 31, 2021, assuming the LCNRV rule is applied to the entire inventory. 3. Assuming inventory write-downs are common for Decker, record any necessary year-end adjusting entry based on the amount calculated in requirement 2.
Chapter10: Inventory
Section: Chapter Questions
Problem 11PA: Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company,...
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14. Decker Company has five products in its inventory. Information about the December 31, 2021, inventory follows.
| Product | Quantity | Unit Cost |
Unit Selling Price |
|||||||
| A | 1,200 | $ | 14 | $ | 20 | |||||
| B | 1,000 | 19 | 22 | |||||||
| C | 800 | 5 | 10 | |||||||
| D | 400 | 9 | 8 | |||||||
| E | 800 | 18 | 17 | |||||||
The cost to sell for each product consists of a 10 percent sales commission.
Required:
1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products.
2. Determine the carrying value of inventory at December 31, 2021, assuming the LCNRV rule is applied to the entire inventory.
3. Assuming inventory write-downs are common for Decker, record any necessary year-end
Transcribed Image Text:1
Record any necessary year-end adjusting entry assuming that inventory write-
downs are common for Decker Company.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
1
Record entry
Clear entry
View general journal
Transcribed Image Text:Required 1
Required 2
Required 3
Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV)
rule is applied to individual products. (Do not round intermediate calculations.)
Inventory
Value
Product
Units
Cost
NRV
A
1,200
1,000
800
D
400
E
800
< Required 1
Required 2 >
B.
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