Below is a statement of inventory for acandle shop, given on January 31.a) Calculate the lower of cost or netrealizable value for the inventory,applied separately to each product, andby inventory group.CostProductRed Sand CandlesRed Votive Candles,Green Votive Candles,10Purple Sand Candles13Purple Unscented Candles 29TotalsQuantity1413DateDate:General JournalAccount/ExplanationPer Unit10.259.358.058.655.35General JournalAccount/ExplanationTotal forproductPage GJ8Debit Creditb) Prepare any required adjusting entryassuming LCNRV is applied to eachitem. Dates must be entered in theformat dd/mmm (15/Jan). Leave theentry blank if no adjusting entry isrequired.Per UnitPage GJ89.459.807.658.206F Debit CreditNRVTotal forproductc) Prepare any required adjusting entryassuming LCNRV is applied to thewhole group. Dates must be entered inthe format dd/mmm (15/Jan). Leavethe entry blank if no adjusting entry isrequired.LCNRV applied toGroupItems.

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Description: Below is a statement of inventory for acandle shop, given on January 31.a) Calculate the lower of cost or netrealizable value for the inventory,applied separately to each product, andby inventory group.CostProductRed Sand CandlesRed Votive Candles,G

Inventory should be recorded at the lowest of cost or net realizable value. Accounting standards…

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Below is a statement of inventory for a candle shop, given on January 31. a) Calculate the lower of cost or net realizable value for the inventory, applied separately to each product, and by inventory group. Cost Product Red Sand Candles Red Votive Candles Green Votive Candles, Purple Sand Candles Purple Unscented Candles Totals Date Quantity 14 13 10 13 29 Date General Journal Account/Explanation Per Unit 10.25 9.35 8.05 8.65 5.35 Total for product General Journal Account/Explanation b) Prepare any required adjusting entry assuming LCNRV is applied to each. item. Dates must be entered in the format dd/mmm (15/Jan). Leave the entry blank if no adjusting entry is required. Page GJ8 F Debit Credit Per Unit 9.45 9.80 7.65 8.20 6 Page GJ8 Debit Credit NRV Total for product c) Prepare any required adjusting entry assuming LCNRV is applied to the whole group. Dates must be entered in the format dd/mmm (15/Jan). Leave the entry blank if no adjusting entry is required. LCNRV applied to Items. Group

Below is a statement of inventory for a candle shop, given on January 31. a) Calculate the lower of cost or net realizable value for the inventory, applied separately to each product, and by inventory group. Cost Product Red Sand Candles Red Votive Candles Green Votive Candles, Purple Sand Candles Purple Unscented Candles Totals Date Quantity 14 13 10 13 29 Date General Journal Account/Explanation Per Unit 10.25 9.35 8.05 8.65 5.35 Total for product General Journal Account/Explanation b) Prepare any required adjusting entry assuming LCNRV is applied to each. item. Dates must be entered in the format dd/mmm (15/Jan). Leave the entry blank if no adjusting entry is required. Page GJ8 F Debit Credit Per Unit 9.45 9.80 7.65 8.20 6 Page GJ8 Debit Credit NRV Total for product c) Prepare any required adjusting entry assuming LCNRV is applied to the whole group. Dates must be entered in the format dd/mmm (15/Jan). Leave the entry blank if no adjusting entry is required. LCNRV applied to Items. Group

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...

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