Calculate the Lower-of-Cost-or-Market using the table below for Samson Goods, Inc. springs inventory.(1) Complete the table.Part #CostReplacement CostNet Realizable ValueNormal ProfitNRV less Normal ProfitLCMSP17G$181,000$ 152,000$151,000$15,000 SP23X254,000249,800262,50025,800 SP78A205,400214,000206,00010,200 Total (2) Prepare the journal entry to record the Allowance to Reduce Inventory to Market using the "Loss Method". $ $ (Record the adjustment to inventory due to decline in value)

It has been given in the question regarding the normal profit as well as the net realizable value as…

Answered: Calculate the Lower-of-Cost-or-Market…

Financial & Managerial Accounting

13th Edition

ISBN:9781285866307

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Inventories

Section: Chapter Questions

Problem 7DQ: Using the following data, how should the inventory be valued under lower of cost or market? Original...

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Calculate the Lower-of-Cost-or-Market using the table below for Samson Goods, Inc. springs inventory.

(1) Complete the table.

Part #	Cost	Replacement Cost	Net Realizable Value	Normal Profit	NRV less Normal Profit	LCM
SP17G	$181,000	$ 152,000	$151,000	$15,000
SP23X	254,000	249,800	262,500	25,800
SP78A	205,400	214,000	206,000	10,200
Total

(2) Prepare the journal entry to record the Allowance to Reduce Inventory to Market using the "Loss Method".

$

$
(Record the adjustment to inventory due to decline in value)

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