Sugary Company has the policy of valuing inventory at the lower of cost and net realizable value using the allowance method. Allowance to Reduce Inventory to NRV account at December 31, 2021 before adjustment is P86,000. Data pertaining to its two classes of sugar products at December 31, 2021 follow: Regular refined (500 bags): NRV/bag-1,500 Cost/bag-1,650 Muscovado (250 bags): NRV/bag-1,900 Cost/bag-1,750 How much inventory should be shown in Sugary Company’s December 31 statement of financial position?
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Sugary Company has the policy of valuing inventory at the lower of cost and net realizable value using the allowance method. Allowance to Reduce Inventory to NRV account at December 31, 2021 before adjustment is P86,000. Data pertaining to its two classes of sugar products at December 31, 2021 follow:
Regular refined (500 bags):
NRV/bag-1,500
Cost/bag-1,650
Muscovado (250 bags):
NRV/bag-1,900
Cost/bag-1,750
How much inventory should be shown in Sugary Company’s December 31
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- 1.Sugary Company has the policy of valuing inventory at the lower of cost and net realizable value using the allowance method. Allowance to Reduce Inventory to NRV account at December 31, 2021 before adjustment is P86,000. Data pertaining to its two classes of sugar products at December 31, 2021 follow:Regular refined (500 bags): NRV/bag-1,500 Cost/bag-1,650Muscovado (250 bags): NRV/bag-1,900 Cost/bag-1,750How much inventory should be shown in Sugary Company’s December 31 statement of financial position? a. 1,137,500 b. 1,187,500 c. 1,225,00014. Sugary Company has the policy of valuing inventory at the lower of cost and net realizable value using the allowance method. Allowance to Reduce Inventory to NRV account at December 31, 2021 before adjustment is P86,000. Data pertaining to its two classes of sugar products at December 31, 2021 follow:Regular refined (500 bags): NRV/bag-1,500 Cost/bag-1,650Muscovado (250 bags): NRV/bag-1,900 Cost/bag-1,750How much inventory should be shown in Sugary Company’s December 31 statement of financial position? a. 1,137,500 b. 1,187,500 c. 1,225,000Kiko Company has the policy of valuing inventory at the lower of cost and net realizable value using the allowance method. Allowance to Reduce Inventory to NRV account at December 31, 2021 before adjustment is P86,000. Analysis of the net realizable value and costs of their products on December 31, 2021 revealed a valuation at the lower of cost and net realizable value of P1,200,000 applied to the individual products. The total cost of its products on that date is P1,300,000.How much is the loss from decline in NRV that Kiko Company should report in profit or loss for the year ended December 31, 2021?
- 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…Pomelo Company has the policy of valuing inventory at the lower of cost and net realizable value using the allowance method. Allowance to Reduce Inventory to NRV account at December 31, 2021 before adjustment is P86,000. Analysis of the net realizable value and costs of their products on December 31, 2021 revealed a valuation at the lower of cost and net realizable value of P1,200,000 applied to the individual products. The total cost of its products on that date is P1,300,000. How much is the loss from decline in NRV that Pomelo Company should report in profit or loss for the year ended December 31, 2021? *Sage 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…
- 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…Marigold Inc. uses LIFO inventory costing. At January 1, 2025, inventory was $211,649 at both cost and market value. At December 31, 2025, the inventory was $287,776 at cost and $269,210 at market value. Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method and (b) the loss method. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation (a) (b) Cost of Goods Sold Allowance to Reduce Inventory to Market Inventory Loss Debit 18566 18566 Credit 18566 18566Bilo-Bilo Company’s inventory at June 30, 2022, was P75,000 based on a physical count of goods priced at cost, and before any necessary month-end adjustments relating to the following: Excluded in the physical count were goods billed to a customer FOB Shipping point on June 30, 2022. These goods had a cost of P2,500 and were picked up by the carrier on July 1, 2022. Goods shipped FOB Destination on June 28, 2022 to a customer were received on June 30, 2022. The invoice cost was P1,500. What amount should Bilo-Bilo report as inventory in its June 30, 2022, balance sheet?
- Ralwins Company had the following balances and transactions during 2018, from January 1 to December 31: 100 units at $83 Sold 50 units Purchased 200 units at $85 Sold 150 units Beginning Merchandise Inventory March 10 June 10 October 30 What would be reported for ending Merchandise Inventory on the balance sheet at December 31, 2018 if the perpetual inventory system and the weighted average inventory costing method are used? (Round unit costs to two decimal places and total costs to nearest dollar.) OA. $8,300 OB. $4,150 OC. $12,450 O D. $8,460 wwwTetum Company has four products in its inventory. Information sbout the December 31, 2021, inventory is os follows: Total Net Realizable Value $187,0e0 Product Tatal Cost $134, 000 97,e00 101 102 117,00 57, 0ee 57,080 103 67, e00 37,e00 184 Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net reslizable value (LCNRV) 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 at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. Inventory Value Product Cost NRV 101 134,000 107,000 102 97,000 117,000 103 67,000 57,000 104 37,000 57,000 335,000LaGreca Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2020, included product X. Relevant per-unit data for product X are as follows. Estimated selling price$50 Cost40 Estimated selling costs14 Normal profit9 There were 1,000 units of product X on hand at December 31, 2020. Product X was incorrectly valued at $38 per unit for reporting purposes. All 1,000 units were sold in 2021.InstructionsCompute the effect of this error on net income for 2020 and the effect on net income for 2021, and indicate the direction of the misstatement for each year.