Product E CABCDE Unit Quantity 1,500 1,300 Cost $ 20 25 1,100 5 700 1,100 9 24 Unit Selling Price $ 26 28 10 8 23 The cost to sell for each product consists of a 10 percent sales commission. Required: 1. Determine the carrying value of ending inventory, assuming the lower of cost or net realizable value (LCNRV) rule is applied to Individual products. 2. Determine the carrying value of ending inventory, 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.
Product E CABCDE Unit Quantity 1,500 1,300 Cost $ 20 25 1,100 5 700 1,100 9 24 Unit Selling Price $ 26 28 10 8 23 The cost to sell for each product consists of a 10 percent sales commission. Required: 1. Determine the carrying value of ending inventory, assuming the lower of cost or net realizable value (LCNRV) rule is applied to Individual products. 2. Determine the carrying value of ending inventory, 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.
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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