Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows: Total Net Realizable Value Product Total Cost $148,000 104,000 74,000 44,000 101 $114,000 124,000 64,000 64,000 102 103 104 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 Realizable Value Product Total Cost $148,000 104,000 74,000 44,000 101 $114,000 124,000 64,000 64,000 102 103 104 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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