At 12/31/20. your company, a retailer's inventory data was provided in the table below: Inventory Number...

 

Transcribed Image Text:

At 12/31/20. your company, a retailer's inventory data was provided in the table below: Inventory Number Cost unit Replacement Selling Ceiling Floor Market of Units cost/unit price unit 500 200 300 100 100 $1.0 $1.5 $1.5 A B C D E Additional data: The disposal cost of each inventory A, B, C, D, and E amounted to 10% of the inventory cost. The normal (gross) profit margin of each inventory A, B, C, D, and E was 100% of the inventory cost. Required $0.80 $1.40 $1.50 $2.20 $4.90 $2.0 $2.5 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Final inventory value ? ? ? ? ? ? ? ? ? a. Determine the selling price per unit of each inventory A. B. C. D. and E (Show your work) b. Complete the last four columns in the table above using the lower-of-cost-or-market rule (Show your work) c. Determine the total cost and final inventory value. Prepare the necessary journal entry at 12/31/20 to reflect the loss due to market decline in value of inventory d. Assume that your firm values the inventory using group of inventory technique (group 1 consist of A and B; group 2 consists of C, D, E), determine the total final inventory value At 12/31/20. your company, a retailer's inventory data was provided in the table below: Inventory Number Cost unit Replacement Selling Ceiling Floor Market of Units cost/unit price unit 500 200 300 100 100 $1.0 $1.5 $1.5 A B C D E Additional data: The disposal cost of each inventory A, B, C, D, and E amounted to 10% of the inventory cost. The normal (gross) profit margin of each inventory A, B, C, D, and E was 100% of the inventory cost. Required $0.80 $1.40 $1.50 $2.20 $4.90 $2.0 $2.5 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Final inventory value ? ? ? ? ? ? ? ? ? a. Determine the selling price per unit of each inventory A. B. C. D. and E (Show your work) b. Complete the last four columns in the table above using the lower-of-cost-or-market rule (Show your work) c. Determine the total cost and final inventory value. Prepare the necessary journal entry at 12/31/20 to reflect the loss due to market decline in value of inventory d. Assume that your firm values the inventory using group of inventory technique (group 1 consist of A and B; group 2 consists of C, D, E), determine the total final inventory value

Answer rating: 100% (QA)

a To determine the selling price per unit of each inventory A B C D and E we need to consider the normal gross profit margin of 100 of the inventory c... View the full answer