Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows. The

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Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows.

The cost to sell for each product consists of a 15 percent sales commission. The normal profit for each product is 40 percent of the selling price.

Required:1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products.2. Determine the carrying value of inventory at December 31, 2021, assuming the LCM rule is applied to the entire inventory.3. Assuming inventory write-downs are common for Forester, record any necessary year-end adjusting entry based on the amount calculated in requirement 2.

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Requirement 1 1 2 3 4 5 Product units RC Ceiling NRV Floor NRV NP Market Middle value of 1 2 3 Cost ...View the full answer

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Related Book For answer-question

Intermediate Accounting

ISBN: 978-1260481952

10th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

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Question Posted: Sep 26, 2019 05:58 AM

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Requirement 1 1 2 3 4 5 Product units RC Ceiling NRV Floor NRV NP Market Middle value of 1 2 3 Cost ...View the full answer

Intermediate Accounting

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