Additional data:The disposal cost of each inventory A, B, C, D, and E amounted to 10% of the inventorycost.The normal (gross) profit margin of each inventory A, B, C, D, and E was 100% of theinventory cost.Required:Determine the selling price per unit of each inventory A, B, C, D, and E Complete the last four columns in the table above using the lower-of-cost-or-market rule Determine the total cost and final inventory value. Prepare the necessary journal entry at 12/31/20 to reflect the loss due to market decline in value of inventory Assume that your firm values the inventory using group of inventory technique (group 1 consist of A and B; group 2 consists of C, D, E), determine the total final inventory value At 12/31/20, your company, a retailer's inventory data was provided in the table below:InventoryNumberCost/unitReplacementSellingCeilingFloorMarketFinalof Unitscost/unitprice/unitinventoryvalueA500$1.0$0.80?B200$1.5$1.40???300$1.5$1.50D100$2.0$2.20??E100$2.5$4.90?Additional data:• The disposal cost of each inventory A, B, C, D, and E amounted to 10% of the inventorycost.• The normal (gross) profit margin of each inventory A, B, C, D, and E was 100% of theinventory cost.

Name: Additional data:The disposal cost of each inventory A, B, C, D, and E
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Description: Additional data:The disposal cost of each inventory A, B, C, D, and E amounted to 10% of the inventorycost.The normal (gross) profit margin of each inventory A, B, C, D, and E was 100% of theinventory cost.Required:Determine the selling price per uni

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Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

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Problem 2PEA: Beginning inventory, purchases, and sales for Item Widget are as follows: Assuming a perpetual...

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Additional data:

The disposal cost of each inventory A, B, C, D, and E amounted to 10% of the inventory

cost.
The normal (gross) profit margin of each inventory A, B, C, D, and E was 100% of the

inventory cost.

Required:

Determine the selling price per unit of each inventory A, B, C, D, and E
Complete the last four columns in the table above using the lower-of-cost-or-market rule
Determine the total cost and final inventory value. Prepare the necessary journal entry at 12/31/20 to reflect the loss due to market decline in value of inventory
Assume that your firm values the inventory using group of inventory technique (group 1 consist of A and B; group 2 consists of C, D, E), determine the total final inventory value

At 12/31/20, your company, a retailer's inventory data was provided in the table below:
Inventory
Number
Cost/unit
Replacement
Selling
Ceiling
Floor
Market
Final
of Units
cost/unit
price/unit
inventory
value
A
500
$1.0
$0.80
?
B
200
$1.5
$1.40
?
?
?
300
$1.5
$1.50
D
100
$2.0
$2.20
?
?
E
100
$2.5
$4.90
?
Additional data:
• The disposal cost of each inventory A, B, C, D, and E amounted to 10% of the inventory
cost.
• The normal (gross) profit margin of each inventory A, B, C, D, and E was 100% of the
inventory cost.

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