Below is a statement of inventory for a candle shop, given on May 31. a) Calculate the lower of cost or net realizable value for the inventory, applied separately to each product, and by inventory group. Cost NRV LCNRV applied to Product Quantity Per Unit Total for Per Unit Total for product product Items Group Blue Scented Candles 29 9.30 9.50 Red Votive Candles Red Unscented Candles 28 7.75 8.20 23 8.30 7.40 Green Votive Candles 24 6.35 Purple Scented Candles Totals 24 9.35 10.15 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 Credit General Journal Date Account/Explanation F Debit

Below is a statement of inventory for a candle shop, given on May 31. a) Calculate the lower of cost or net realizable value for the inventory, applied separately to each product, and by inventory group. Cost NRV LCNRV applied to Product Quantity Per Unit Total for Per Unit Total for product product Items Group Blue Scented Candles 29 9.30 9.50 Red Votive Candles Red Unscented Candles 28 7.75 8.20 23 8.30 7.40 Green Votive Candles 24 6.35 Purple Scented Candles Totals 24 9.35 10.15 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 Credit General Journal Date Account/Explanation F Debit

Name: Ccid%3D11210Below is a statement of inventory for a candle shop, give
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Description: Ccid%3D11210Below is a statement of inventory for a candle shop, given on May 31.a) Calculate the lower of cost or net realizable value for the inventory, applied separately to each product, and by inventory group.CostProductPer UnitNRVLCNRV applied

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 3E: Inventory Write-Down Byron Company has five products in its inventory and uses the FIFO cost flow...

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( Appendix 6B) Refer to the information for Morgan Inc. above. If Morgan uses a periodic inventory system, what is the cost of goods sold under FIFO at April 30? a. $32,800 b. $38,400 c. $63,600 d. $69,200
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Calculate the cost of goods sold dollar value for B74 Company for the sale on November 20, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG).
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( Appendix 6B) Inventory Costing Methods: Periodic Average Cost Refer to the information for Filimonov Inc. (p. 337) and assume that the company uses a periodic inventory system. Required: Calculate the cost of goods sold and the cost of ending inventory using the average cost method. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.)
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Inventory Write-Down Stiles Corporation uses the FIFO cost flow assumption and is in the process of applying the LCNRV rule for each of two products in its ending inventory. A profit margin of 30% on the selling price is considered normal for each product. Specific data for each product are as follows: Inventory Write-Down Use the information in E8-1. Assume that Stiles uses the LIFO cost flow assumption and is applying the LCM rule. Required: 1. What is the correct inventory value for each product? 2. Next Level With regard to requirement 1, what effect does the imposition of the constraints on market value have on the inventory valuations?
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