On December 31,2019 an entity's ending inventory at cost was P3,000,000 and the allowance for inventory write-down before any adjustments was 550,000. The entity recognized inventory write-down and any reversal using the item by item basis. Inventory on January 1, 2019 had a cost of 1,500,000 and purchases during the year totaled 8,000,000. Relevant information on December 2019 follows: Replacement Normal Product Cost Sales Price NRV Cost Profit 1 800,000 900,000 1,200,000 550,000 250,000 2 1,000,000 1,200,000 1,300,000 1,100,000 150,000 3 700,000 1,000,000 1,250,000 950,000 300,000 4 500,000 600,000 1,000,000 350,000 300,000
On December 31,2019 an entity's ending inventory at cost was P3,000,000 and the allowance for inventory write-down before any adjustments was 550,000. The entity recognized inventory write-down and any reversal using the item by item basis. Inventory on January 1, 2019 had a cost of 1,500,000 and purchases during the year totaled 8,000,000. Relevant information on December 2019 follows: Replacement Normal Product Cost Sales Price NRV Cost Profit 1 800,000 900,000 1,200,000 550,000 250,000 2 1,000,000 1,200,000 1,300,000 1,100,000 150,000 3 700,000 1,000,000 1,250,000 950,000 300,000 4 500,000 600,000 1,000,000 350,000 300,000
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 6E: Inventory Write-Down The inventories of Berry Company for the years 2019 and 2020 are as follows:...
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What amount of loss or reversal of loss on write-down should be recognized for 2019?
What amount of cost of goods sold should be reported for 2019?
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