Solve and show all the work for part A and B only Copperhead Company has provided you with the following information regarding its inventory ofcopper for September and October. Copperhead uses a perpetual inventory system.September 30October 31Copper inventory (in tonnes)Cost per tonneNRV per tonne2,5002,000$505$535$540$520Instructions(a) Calculate the cost, the net realizable value, and the amount to be reported on the balance sheet forCopperhead's inventory at (1) September 30 and (2) October 31.(b) Prepare any journal entries required to record the LCNRV of the copper inventory at (1) September 30and (2) October 31.(c) Assume that during the month of November the company did not purchase or sell any copperinventory and that the NRV per tonne was $530 on November 30. Is an adjusting entry required atNovember 30? Explain. If so, prepare the adjusting entry.(d) What will have to be disclosed in Copperheads notes to the financial statements with regard to itscopper inventory?

Solution:- a)Calculation of the cost, the net realizable value, and the amount to be reported on the…

Answered: Solve and show all the work for part A…

Business

Accounting

Solve and show all the work for part A and B only

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section: Chapter Questions

Problem 2AP

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Question

Solve and show all the work for part A and B only

Copperhead Company has provided you with the following information regarding its inventory of
copper for September and October. Copperhead uses a perpetual inventory system.
September 30
October 31
Copper inventory (in tonnes)
Cost per tonne
NRV per tonne
2,500
2,000
$505
$535
$540
$520
Instructions
(a) Calculate the cost, the net realizable value, and the amount to be reported on the balance sheet for
Copperhead's inventory at (1) September 30 and (2) October 31.
(b) Prepare any journal entries required to record the LCNRV of the copper inventory at (1) September 30
and (2) October 31.
(c) Assume that during the month of November the company did not purchase or sell any copper
inventory and that the NRV per tonne was $530 on November 30. Is an adjusting entry required at
November 30? Explain. If so, prepare the adjusting entry.
(d) What will have to be disclosed in Copperheads notes to the financial statements with regard to its
copper inventory?

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