The following information pertains merchandise inventory of Bloom Company at the end of year. Apply Lower of Cost or Market rule and provide the necessary adjusting entry for adjustment of inventory account balance in the space provided on the Answer Sheets. Item Quantity on hand Unit Cost Selling Price Replacement Cost Net Realizable Value (Ceiling Price) Net Realizable Value Less Normal Profit (Floor Price) LCM Zoom 300 $90 $120 $105 $100 $75 Zap 600 $60 $65 $45 $60 $55 Debit Credit
The following information pertains merchandise inventory of Bloom Company at the end of year. Apply Lower of Cost or Market rule and provide the necessary adjusting entry for adjustment of inventory account balance in the space provided on the Answer Sheets. Item Quantity on hand Unit Cost Selling Price Replacement Cost Net Realizable Value (Ceiling Price) Net Realizable Value Less Normal Profit (Floor Price) LCM Zoom 300 $90 $120 $105 $100 $75 Zap 600 $60 $65 $45 $60 $55 Debit Credit
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 6PA: Data on the physical inventory of Ashwood Products Company as of December 31 follow: Quantity and...
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The following information pertains merchandise inventory of Bloom Company at the end of year. Apply Lower of Cost or Market rule and provide the necessary
Item |
Quantity on hand |
Unit Cost |
Selling Price |
Replacement Cost |
Net Realizable Value (Ceiling Price) |
Net Realizable Value Less Normal Profit (Floor Price) |
LCM |
Zoom |
300 |
$90 |
$120 |
$105 |
$100 |
$75 |
|
Zap |
600 |
$60 |
$65 |
$45 |
$60 |
$55 |
|
|
Debit |
Credit |
|
|
|
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