Forester Company has five products in its inventory. Information about the December 31, 2018, inventory follows. Product Quantity Unit Cost Unit Replacement Cost Unit Selling Price A 600 $ 12 $ 14 $ 18 B 1,000 17 13 20 C 600 5 4 10 D 600 9 6 8 E 600 16 14 15 The...

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Accounting

Forester Company has five products in its inventory. Informationabout the December 31, 2018, inventory follows.
Product Quantity Unit
Cost Unit
Replacement
Cost Unit
Selling
Price
A 600 $ 12 $ 14 $ 18
B 1,000 17 13 20
C 600 5 4 10
D 600 9 6 8
E 600 16 14 15

The cost to sell for each product consists of a 10 percent salescommission. The normal profit percentage for each product is 25percent of the selling price.

Required:
1. Determine the carrying value of inventory atDecember 31, 2018, assuming the lower of cost or market (LCM) ruleis applied to individual products.
Product (units) RC NRV NRV-NP Market Cost Inventory Value
A (600)
B (1000)
C (600)
D (600)
E (600)
Total $0 $0 $0
2a. Determine the carrying value of inventoryat December 31, 2018, assuming the LCM rule is applied to theentire inventory. (Do not round intermediate calculations.)
Inventory carryingvalue
2b. Record any necessary year-end adjusting entry assuming thatinventory write-downs are common for Forester Company.
Note: Enter debits before credits.
Event General Journal Debit Credit
1

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Ans Product NRV Per Unit NRVNP per Unit A 18 18 01 162 162 18 025 117 B 20 20 01 18 18 20 025 13 C 10 10 01 9 9 10 025 65 D 8 8 01 72 72 8 025 52 E 15 15 01 135 135 15 025 975 Productunits Replacement Cost 1 Celling NRV 2 Floor NRVNP 3 See Answer

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Product	Quantity	Unit Cost		Unit Replacement Cost		Unit Selling Price
A	600	$	12	$	14	$	18
B	1,000		17		13		20
C	600		5		4		10
D	600		9		6		8
E	600		16		14		15