Tatum Company has four products in its inventory. Information about ending inventory is as follows: Total Net Realizable Value Total Replacement Product Total Cost 101 $ 124,000 Cost $ 113,600 $ 103,200 102 92,800 87,600 113,400 103 61,800 104 31,000 41,200 29,000 51,600 51,800 The normal profit is 20% of total cost. Required: 1. Determine the carrying value of inventory assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the carrying value of inventory assuming the lower of cost or market (LCM) rule is applied to individual products. Replacement Product Total Cost NRV NRV minus NP Market cost Inventory Value 101 $ 124,000 $ 113,600 $ 103,200 102 92,800 87,600 113,400 103 61,800 41,200 51,600 104 31,000 29,000 51,800 Totals $ 309,600 S 0

Tatum Company has four products in its inventory. Information about ending inventory is as follows: Total Net Realizable Value Total Replacement Product Total Cost 101 $ 124,000 Cost $ 113,600 $ 103,200 102 92,800 87,600 113,400 103 61,800 104 31,000 41,200 29,000 51,600 51,800 The normal profit is 20% of total cost. Required: 1. Determine the carrying value of inventory assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the carrying value of inventory assuming the lower of cost or market (LCM) rule is applied to individual products. Replacement Product Total Cost NRV NRV minus NP Market cost Inventory Value 101 $ 124,000 $ 113,600 $ 103,200 102 92,800 87,600 113,400 103 61,800 41,200 51,600 104 31,000 29,000 51,800 Totals $ 309,600 S 0

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 2RE: Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net...

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