70.2K

Verified Solution

Link Copied!

Skysong, 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 Cost Replacement Cost/Unit Estimated Selling Price/Unit Completion & Disposal Cost/Unit Normal Profit Margin/Unit Item Quantity X490 11,220 $13.75 $13.15 $15.40 $3.30 $3.74 X512 5,445 7.70 8.25 9.79 0.28 1.98 X682 19,800 20.90 20.46 34.71 3.58 9.90 Z195 13,750 15.68 15.40 21.78 1.54 6.33 Z846 9,460 13.20 14.03 15.35 2.31 1.ZI - Your answer is partially correct. Calculate the lower-of-cost-or-market using the individual-item approach. (Round answers to 2 decimal places, e.g. 52.75.) Lower-of-Cost-or-Market (Per unit basis) X490 $ 8.36 X512 $ 7.53 A 20.46 X682 X195 $ $ A 15.4 X846 $ 11.83 e Textbook and Media List of Accounts - Your answer is partially correct. Show the journal entries Skysong, Inc. will need to make in order to write down the ending inventory from cost to market. Assume this is Skysong's first year of operations. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit cre Cost of Goods sold Method: Cost of Goods Sold 12562 Allowance to Reduce Inventory to Market 12562 Loss method: Loss Due to Market Decline of Inventory 12562 Allowance to Reduce Inventory to Market 12562 e Textbook and Media List of Accounts Assistance Used Save for later Attempts: 2 of 3 used Submit

Answer & Explanation Solved by verified expert

See Answer