2. At year-end 20x8, Ancho Canned Chile has 8,000 units on hand at a weighted-...
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2. At year-end 20x8, Ancho Canned Chile has 8,000 units on hand at a weighted- average cost of $13 per item. At year end, Ancho learns that the purchase price has fallen to $11. Sales for the year were at $16 per item. Resellers cost Ancho an average $4 per unit. Ancho's normal profit margin is $3 per unit. What is Ancho's ending inventory applying LCM by item? a b. If the loss is not significant enough to warrant disclosure on the income statement, what year-end journal entry does Ancho record? If the market value of the inventory increases in the following year, can Ancho recognize the recovery
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