80.2K

Verified Solution

Link Copied!

4 Exercise 9-6 (Algo) Lower of cost or market [LO9-1) 75 Tatum Company has four products in its inventory. Information about the December 31, 2021, Inventory is as follows: oints Product Total Cost 101 $161,000 102 119,400 103 79,500 104 40,600 Total Replacement Coat $146,900 112,700 53,000 37.900 Total Not Realizable Value $133,500 145,900 67.100 68,100 The normal profit is 40% of total cost. Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products, 2. Assuming that inventory write-downs are common for Totum Company, record any necessary year-end adjusting entry Complete this question by entering your answers in the tabs below. Required: Required 2 Determine the carrying value of inventory at December 31, 2021, osuming the lower of cost or market (LCM) rule is applied t Individual products Market Inventory Value NAVNP NRV Replacement cost Product Total Cost $ $ 101 102 103 104 Totals 161,000 $ 119,400 79,500 40.600 400,500 146,900 112.700 63.000 37.900 133,500 145.000 67.100 68,00 0 Required 2 > The normal profit is 40% of total cost. Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) 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 Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry. (if no required for a transaction/event, select "No journal entry required in the first account rield.) View transaction list Journal entry worksheet

Answer & Explanation Solved by verified expert

See Answer