Business, 26.11.2019 07:31 shadowz8813
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 900 $ 19 $ 21 $ 25
b 800 24 20 27
c 1,000 12 11 17
d 500 16 13 15
e 800 23 21 22
the cost to sell for each product consists of a 15 percent sales commission. the normal profit percentage for each product is 25 percent of the selling price.
required:
1. determine the carrying value of inventory at december 31, 2018, assuming the lower of cost or market (lcm) rule is applied to individual products.
2a. determine the carrying value of inventory at december 31, 2018, assuming the lcm rule is applied to the entire inventory.
2b. assuming inventory write-downs are usual business practice for forester, record any necessary year-end adjusting entry.
req 1
determine the carrying value of inventory at december 31, 2018, assuming the lower of cost or market (lcm) rule is applied to individual products. (do not round intermediate calculations.)
product (units) rc nrv nrv-np market cost inventory value
a (900)
b (800)
c (1000)
d (500)
e (800)
total $0 $0 $0forester 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 900 $ 19 $ 21 $ 25
b 800 24 20 27
c 1,000 12 11 17
d 500 16 13 15
e 800 23 21 22
the cost to sell for each product consists of a 15 percent sales commission. the normal profit percentage for each product is 25 percent of the selling price.
required:
1. determine the carrying value of inventory at december 31, 2018, assuming the lower of cost or market (lcm) rule is applied to individual products.
2a. determine the carrying value of inventory at december 31, 2018, assuming the lcm rule is applied to the entire inventory.
2b. assuming inventory write-downs are usual business practice for forester, record any necessary year-end adjusting entry.
req 1
determine the carrying value of inventory at december 31, 2018, assuming the lower of cost or market (lcm) rule is applied to individual products. (do not round intermediate calculations.)
product (units) rc nrv nrv-np market cost inventory value
a (900)
b (800)
c (1000)
d (500)
e (800)
total $0 $0 $0
Answers: 3
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Forester company has five products in its inventory. information about the december 31, 2018, invent...
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