Decker Company has five products in its inventory. Information about ending inventory follows. Product Quantity Unit Cost
Fantastic news! We've Found the answer you've been seeking!
Question:
Decker Company has five products in its inventory. Information about ending inventory follows.
Product | Quantity | Unit Cost | Unit Selling Price |
---|---|---|---|
A | 1,200 | $ 14 | $ 20 |
B | 1,000 | 19 | 22 |
C | 800 | 5 | 10 |
D | 400 | 9 | 8 |
E | 800 | 18 | 17 |
The cost to sell for each product consists of a 10 percent sales commission.
Required:
- Determine the carrying value of ending inventory, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products.
- Determine the carrying value of ending inventory, assuming the LCNRV rule is applied to the entire inventory.
- Assuming inventory write-downs are common for Decker, record any necessary year-end adjusting entry based on the amount calculated in requirement 2.
Related Book For
College Mathematics For Business Economics, Life Sciences, And Social Sciences
ISBN: 978-0134674148
14th Edition
Authors: Raymond Barnett, Michael Ziegler, Karl Byleen, Christopher Stocker
Posted Date: