Information about the ending inventories of Charleston Chair Company, who applies the LIFO method, is shown below: Year Cost Current Selling Cost of Normal Replacement Cost Price Completion Profit Margin 2020 $10,000 $11,500 $12,000 $1,000 $1,100 2021 15,000 13,000 14,000 1,500 1,250 2022 20,000 18,600 24,000 2,200 2,900 Required: a. Determine the value of the inventory for each year using the lower of cost or market rule. b. Assuming that Charleston Chair Company maintains a periodic inventory system, prepare journal entries for 2022 to record the reduction of the inventory to market value using: 1. the direct method 2. the allowance method . Determine the value of the inventory for each year using the lower of cost or market rule. 2020 2021 2022 b1. Assuming that Charleston Chair Company maintains a periodic inventory system, prepare journal entries for December 31, 2022 to record the reduction of the inventory to market value using the direct method. b2. Assuming that Charleston Chair Company maintains a periodic inventory system, prepare journal entries for December 31, 2022 to record the reduction of the inventory to market value using the allowance method.

Information about the ending inventories of Charleston Chair Company, who applies the LIFO method, is shown below: Year Cost Current Selling Cost of Normal Replacement Cost Price Completion Profit Margin 2020 $10,000 $11,500 $12,000 $1,000 $1,100 2021 15,000 13,000 14,000 1,500 1,250 2022 20,000 18,600 24,000 2,200 2,900 Required: a. Determine the value of the inventory for each year using the lower of cost or market rule. b. Assuming that Charleston Chair Company maintains a periodic inventory system, prepare journal entries for 2022 to record the reduction of the inventory to market value using: 1. the direct method 2. the allowance method . Determine the value of the inventory for each year using the lower of cost or market rule. 2020 2021 2022 b1. Assuming that Charleston Chair Company maintains a periodic inventory system, prepare journal entries for December 31, 2022 to record the reduction of the inventory to market value using the direct method. b2. Assuming that Charleston Chair Company maintains a periodic inventory system, prepare journal entries for December 31, 2022 to record the reduction of the inventory to market value using the allowance method.

Name: Information about the ending inventories of Charleston Chair Company,
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Description: Information about the ending inventories of Charleston Chair Company, who applies the LIFO method, is shown below:YearCostCurrentSellingCost ofNormalReplacement CostPriceCompletionProfit Margin2020$10,000$11,500$12,000$1,000$1,100202115,00013,00014,0

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter4: Operating Activities: Sales And Cash Receipts

Section: Chapter Questions

Problem 1.3C

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Year	Cost	Current	Selling	Cost of	Normal
2020	$10,000	$11,500	$12,000	$1,000	$1,100
2021	15,000	13,000	14,000	1,500	1,250
2022	20,000	18,600	24,000	2,200	2,900

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