Marin, Inc. values its inventory at the lower-of-LIFO-cost-or-market. The following information is available from the company's inventory records as of December 31, 2020. Unit Replacement Estimated Selling Completion & Disposal Normal Profit Item Quantity Cost Cost/Unit Price/Unit Cost/Unit Margin/Unit X490 10,404 $ 12.75 $ 12.19 $ 14.28 $ 3.06 $ 3.47 X512 5,049 7.14 7.65 9.08 0.26 1.84 X682 18,360 19.38 18.97 32.18 3.32 9.18 Z195 12,750 14.54 14.28 20.20 1.43 5.87 Z846 8,772 12.24 13.01 14.23 2.14 1.12
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- Splish Brothers, Inc. values its inventory at the lower-of-LIFO-cost-or-market. The following information is available from the company’s inventory records as of December 31, 2020. Item Quantity UnitCost ReplacementCost/Unit Estimated SellingPrice/Unit Completion & DisposalCost/Unit Normal ProfitMargin/Unit X490 8,976 $11.00 $10.52 $12.32 $2.64 $2.99 X512 4,356 6.16 6.60 7.83 0.22 1.58 X682 15,840 16.72 16.37 27.76 2.86 7.92 Z195 11,000 12.54 12.32 17.42 1.23 5.06 Z846 7,568 10.56 11.22 12.28 1.85 0.97 (a) Correct answer icon Your answer is correct. Calculate the lower-of-cost-or-market using the individual-item approach. (Round answers to 2 decimal places, e.g. 52.75.) (b) Partially correct answer icon Your answer is partially correct. Show the journal entries Splish Brothers, Inc. will…7. Cost Flow (Single Transaction). VRL Enterprises uses the moving average method to determine the cost of its inventory. During August 2020, VRL recorded the following information pertaining to its inventory: Units Unit cost Total cost Balance, August 1 20,000 P10 P200,000 Sale, August 15 17,500 Purchase, August 22 10,000 P16 P160,000 What amount of inventory should VRL report in its August 31, 2020 statement of financial position?Kingbird Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company’s inventory records as of December 31, 2020. Item Quantity Unit Cost ReplacementCost/Unit Estimated SellingPrice/Unit Completion & DisposalCost/Unit Normal ProfitMargin/Unit A 1,400 $8.48 $9.49 $11.87 $1.70 $2.03 B 1,100 9.27 8.93 10.62 1.02 1.36 C 1,300 6.33 6.10 8.14 1.30 0.68 D 1,300 4.29 4.75 7.12 0.90 1.70 E 1,700 7.23 7.12 7.57 0.79 1.13 Greg Forda is an accounting clerk in the accounting department of Kingbird Co., and he cannot understand why the market value keeps changing from replacement cost to net realizable value to something that he cannot even figure out. Greg is very confused, and he is the one who records inventory purchases and calculates ending inventory. You are the manager of…
- Shannon, Inc. values its inventory at the lower-of-cost-or-NRV. The following information is available from the company's inventory records as of December 31, 2022. Unit Estimated Selling Completion & Disposal Cost/Unit Item Quantity Cost Price/Unit X490 10,200 $12.50 $14.00 $3.00 X512 4,950 7.00 8.90 0.25 X682 18,000 19.00 31.55 3.25 Z195 12,500 14.25 19.80 1.40 Z846 8,600 12.00 13.95 2.10Sage Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company’s inventory records as of December 31, 2020. Item Quantity Unit Cost ReplacementCost/Unit Estimated SellingPrice/Unit Completion & DisposalCost/Unit Normal ProfitMargin/Unit A 1,600 $8.33 $9.32 $11.66 $1.67 $2.00 B 1,300 9.10 8.77 10.43 1.00 1.33 C 1,500 6.22 5.99 7.99 1.28 0.67 D 1,500 4.22 4.66 6.99 0.89 1.67 E 1,900 7.10 6.99 7.44 0.78 1.11 Greg Forda is an accounting clerk in the accounting department of Sage Co., and he cannot understand why the market value keeps changing from replacement cost to net realizable value to something that he cannot even figure out. Greg is very confused, and he is the one who records inventory purchases and calculates ending inventory. You are the manager of the…Data for the next 3 questions: Alberto Company uses the lower-of-cost-or-market method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2019, consists of products D, E, F, G, H, and I. Relevant per-unit data for these products appear below. Item D Item E Item F Item G Item H Item I Quantity on hand 18 15 10 25 15 30 Original Cost $75 $80 $80 $80 $50 $36 Replacement cost $120 $72 $70 $30 $70 $30 Selling price $120 $110 $95 $90 $110 $90 Estimated selling expense $30 $28 $24 $23 $28 $23 Normal profit $24 $22 $19 $18 $22 $18 Based upon data, what is the balance of merchandise inventory before application of LCM principle? Answer: What would be the adjusted balance of merchandise inventory after application of LCM Principle? Answer: Provide the adjusting journal entry that company has to make to reflect…
- Showtime Company's ending inventory at December 31, 2020, includes the following items: Units on Net Realizable Value Per Unit $ 117 Product Hand Unit Cost $112 35 FM 10 147 140 MB 49 53 188 174 D- SL 80 94 Required: Calculate LCNRV for the inventory 6. As a whole (assuming the Items are similar). ences LCNRV applied to nventory b. Applied separately to each product. LCNRV Total Cost Total NRV Product applied to Each Product BB FM MB SL %24 c. Prepare the appropriate adjusting entry, if required, based on your calculations in (b). View transaction list Journal entry worksheet Record the entry to write down inventory to NRV. Note: Enter debits before credits Date General Journal Debit Credit Dec 31, 2020You have the following information for Concord Inc. Concord Inc uses the periodic mathod ofaccounting for its inventory transactions. March Beginning imventory 2,200 liters ata cost of B0c par liter. March 3. Purchased 2.500 liters atacost of 84c per liter. March Sold 2,300 liters for $1.05 per liter. March 10 Purchased 4,000 liters ata cost of 91e per liter. March 20 Purchased 2,300 liters at a cost of 99e per liter. March 30 Sold 5,000 liters for $1.25 per liter. (a1) Calculate thevalus of anding inventory that would be rcported on the balance sheet. under cach of the following cost flow ESsumptions. (Round answers to 2 decimal places, eg 125 50) (1) Specificidantification method assuming The March 5 sala consisted of 1,000 liters from the March 1 beginning inventory anc 1.300 liters from the March 3 purchase:and t The March 30 sala consisted of the following number of units sold from beginninginventory and sach purchase: 450 liters from March 1: 550liters from March 3: 2,90oliters…VI. Mega Company had the following inventory transactions during 2019: Unit Sellin Transaction Units Unit Cost g Price Inventory, January 1 Purchase, March 7 Purchase, July 15 Sale, May 20 Sale, June 30 Sale, September 17 Inventory, December 31 250 200 275 (120) (55) (250) 300 10.50 11.00 11.75 P 14.00 15.00 16.00 Using Moving Average find Cost of Ending Inventory, Cost of Goods Sold and Gross Profit 个 4 out of 14 Q Download
- Ashraf Company began operations in 2020 and determined its ending inventory at cost and at NRV on December 31, 2020, and December 31, 2021. This information is presented below. Cost Net Realizable Value 12/31/2020 $130,000 $110,000 12/31/2021 230,000 265,000 What is the effect of applying LCNRV (lower of cost or net realizable value) on income for 2021? v a- No effect E10.000Kingbird Company uses the LCM method, on an individual-item basis, in pricing its inventory items because it uses LIFO to value its inventory. The inventory at December 31, 2025, consists of products D, E, F, G, H, and I. Relevant per-unit data for these products appear below. Estimated selling price Cost Replacement cost Estimated selling expense Normal profit Item D Item E $ Item D $293 183 293 73 $ 49 183 Item E $268 195 176 73 49 176 Item F $232 195 171 73 49 Item G $220 195 73 61 49 Item H $268 122 171 73 Using the LCM rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2025, for each of the inventory items above. 49 Item I $220 88 73 73 49Riegel Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2019, consists of products D, E, F, G, and H. Relevant per-unit data for these products appear below. Item D E F G H Estimated selling price €125 € 115 € 85 € 95 € 100 Cost 77 82 70 50 55 Cost to complete 30 30 25 35 30 Selling costs 10 18 10 20 10 Instructions: Using the LCNRV rule, determine the proper unit value for statement of financial position reporting purposes at December 31, 2019, for each of the inventory items above.