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Monty Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company's inventory records as of December 31, 2025. Estimated Item Quantity Unit Cost Replacement Cost/Unit Selling Price/Unit Completion & Disposal Cost/Unit Normal Profit Margin/Unit A 1,400 $7.73 $8.65 $10.82 $1.55 $1.85 B 1,100 8.45 8.14 9.68 0.93 1.24 C 1,300 5.77 5.56 7.42 1.18 0.62 D 1,300 3.91 4.33 6.49 0.82 1.55 E 1,700 6.59 6.49 6.90 0.72 1.03 Greg Forda is an accounting clerk in the accounting department of Monty Co., and he cannot understand why the market value keeps changing from replacement cost to net realizable value to something that he cannot even figure out. Greg is very confused, and he is the one who records inventory purchases and calculates ending inventory. You are the manager of the department and an accountant. Calculate the lower-of-cost-or-market using the individual-item approach. (Round answers to 2 decimal places, e.g. 78.73.) Lower-of-Cost-or-Market (Per unit basis) Item A $ Item B $ Item C $ Item D $ Item E $ eTextbook and Media List of Accounts Show the journal entry he will need to make in order to write down the ending inventory from cost to market. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Cost of Goods sold Method: Debit Credit Loss method:

Monty Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company's inventory records as of December 31, 2025. Estimated Item Quantity Unit Cost Replacement Cost/Unit Selling Price/Unit Completion & Disposal Cost/Unit Normal Profit Margin/Unit A 1,400 $7.73 $8.65 $10.82 $1.55 $1.85 B 1,100 8.45 8.14 9.68 0.93 1.24 C 1,300 5.77 5.56 7.42 1.18 0.62 D 1,300 3.91 4.33 6.49 0.82 1.55 E 1,700 6.59 6.49 6.90 0.72 1.03 Greg Forda is an accounting clerk in the accounting department of Monty Co., and he cannot understand why the market value keeps changing from replacement cost to net realizable value to something that he cannot even figure out. Greg is very confused, and he is the one who records inventory purchases and calculates ending inventory. You are the manager of the department and an accountant. Calculate the lower-of-cost-or-market using the individual-item approach. (Round answers to 2 decimal places, e.g. 78.73.) Lower-of-Cost-or-Market (Per unit basis) Item A $ Item B $ Item C $ Item D $ Item E $ eTextbook and Media List of Accounts Show the journal entry he will need to make in order to write down the ending inventory from cost to market. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Cost of Goods sold Method: Debit Credit Loss method:

Cornerstones of Financial Accounting
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 69BPSB
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Monty Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company's inventory records as of December 31, 2025. Estimated Item Quantity Unit Cost Replacement Cost/Unit Selling Price/Unit Completion & Disposal Cost/Unit Normal Profit Margin/Unit A 1,400 $7.73 $8.65 $10.82 $1.55 $1.85 B 1,100 8.45 8.14 9.68 0.93 1.24 C 1,300 5.77 5.56 7.42 1.18 0.62 D 1,300 3.91 4.33 6.49 0.82 1.55 E 1,700 6.59 6.49 6.90 0.72 1.03 Greg Forda is an accounting clerk in the accounting department of Monty Co., and he cannot understand why the market value keeps changing from replacement cost to net realizable value to something that he cannot even figure out. Greg is very confused, and he is the one who records inventory purchases and calculates ending inventory. You are the manager of the department and an accountant. Calculate the lower-of-cost-or-market using the individual-item approach. (Round answers to 2 decimal places, e.g. 78.73.) Lower-of-Cost-or-Market (Per unit basis) Item A $ Item B $ Item C $ Item D $ Item E $ eTextbook and Media List of Accounts Show the journal entry he will need to make in order to write down the ending inventory from cost to market. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Cost of Goods sold Method: Debit Credit Loss method:
Transcribed Image Text:Monty Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company's inventory records as of December 31, 2025. Estimated Item Quantity Unit Cost Replacement Cost/Unit Selling Price/Unit Completion & Disposal Cost/Unit Normal Profit Margin/Unit A 1,400 $7.73 $8.65 $10.82 $1.55 $1.85 B 1,100 8.45 8.14 9.68 0.93 1.24 C 1,300 5.77 5.56 7.42 1.18 0.62 D 1,300 3.91 4.33 6.49 0.82 1.55 E 1,700 6.59 6.49 6.90 0.72 1.03 Greg Forda is an accounting clerk in the accounting department of Monty Co., and he cannot understand why the market value keeps changing from replacement cost to net realizable value to something that he cannot even figure out. Greg is very confused, and he is the one who records inventory purchases and calculates ending inventory. You are the manager of the department and an accountant. Calculate the lower-of-cost-or-market using the individual-item approach. (Round answers to 2 decimal places, e.g. 78.73.) Lower-of-Cost-or-Market (Per unit basis) Item A $ Item B $ Item C $ Item D $ Item E $ eTextbook and Media List of Accounts Show the journal entry he will need to make in order to write down the ending inventory from cost to market. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Cost of Goods sold Method: Debit Credit Loss method:
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