Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows:Total NetProductTotal CostRealizable Value$156,000108,00078,00048,000$118,000128,00068, 00068, 000101102103104Required:1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) rule isapplied 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 1Required 2Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV)rule is applied to individual products.InventoryValueProductCostNRV101$156,000 $118,000102108,000128,00010378,00068,00010448,00068,000$390,000< Required 1Required 2 > Complete this question by entering your answers in the tabs below.Required 1Required 2Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry. (If no entry isrequired for a transaction/event, select "No journal entry required" in the first account field.)View transaction listJournal entry worksheet1>Record any necessary year-end adjusting entry assuming that inventory write-downs are common for Tatum Company.Note: Enter debits before credits.TransactionGeneral JournalDebitCredit1Record entryClear entryView general journal

Name: Tatum Company has four products in its inventory. Information about t
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Description: Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows:Total NetProductTotal CostRealizable Value$156,000108,00078,00048,000$118,000128,00068, 00068, 000101102103104Required:1. Determine th

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Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows: Total Net Total Cost $156,000 108,000 78,000 48,000 Product Realizable Value $118,000 128,000 68,000 68,000 101 102 103 104 Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. 2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry.

Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows: Total Net Total Cost $156,000 108,000 78,000 48,000 Product Realizable Value $118,000 128,000 68,000 68,000 101 102 103 104 Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. 2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry.

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 13RE: Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a...

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Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a cost and net realizable value of 300,000, prepare the journal entry to record the reductions to NRV for Paul Corporation assuming that Paul uses a periodic inventory system and the allowance method. Paul Corporation uses FIFO and reports the following inventory information: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down of inventory.
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