Tatum Company has four products in its inventory. Information about the December 31, 2018, inventory is as
Question:
The normal gross profit percentage is 25% of total cost.
Required:
1. Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or market (LCM) rule is applied to individual products.
2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry.
Transcribed Image Text:
Total Total Net Reallzable Total Product Value 101 102 103 104 $120,000 90,000 60,000 30,000 $100,000 85,000 40,000 28,000 $100,000 110,000 50,000 50,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 71% (7 reviews)
Requirement 1 1 2 3 4 5 Product RC Ceiling NRV Floor NRV NP Market Middle value ...View the full answer
Answered By
Mwangi Clement
I am a tried and tested custom essay writer with over five years of excellent essay writing. In my years as a custom essay writer, I have completed more than 2,000 custom essays in a diverse set of subjects. When you order essays from me, you are working with one of the best paper writers on the web. One of the most common questions I get from customers is: “can you write my essay?” Upon hearing that request, my goal is to provide the best essays and overall essay help available on the web. I have worked on papers in subjects such as Nursing and Healthcare, English Literature, Sociology, Philosophy, Psychology, Education, Religious Studies, Business, Biological Sciences, Communications and Media, Physical Sciences, Marketing and many others. In these fields, my specialties lie in crafting professional standard custom writings. These include, but are not limited to: research papers, coursework, assignments, term papers, capstone papers, reviews, summaries, critiques, proofreading and editing, and any other college essays.
My extensive custom writings experience has equipped me with a set of skills, research abilities and a broad knowledge base that allows me to navigate diverse paper requirements while keeping my promise of quality. Furthermore, I have also garnered excellent mastery of paper formatting, grammar, and other relevant elements. When a customer asks me to write their essay, I will do my best to provide the best essay writing service possible. I have satisfactorily offered my essay writing services for High School, Diploma, Bachelors, Masters and Ph.D. clients.
I believe quality, affordability, flexibility, and punctuality are the principal reasons as to why I have risen among the best writers on this platform. I deliver 100% original papers that pass all plagiarism check tests (Turnitin, Copyscape, etc.). My rates for all papers are relatively affordable to ensure my clients get quality essay writing services at reasonable prices.
4.50+
5+ Reviews
14+ Question Solved
Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Question Posted:
Students also viewed these Cost Accounting questions
-
Byron Company has five products in its inventory and uses the FIFO cost flow assumption. Specific data for each product are as follows: Required: 1. What is the correct inventory value, assuming the...
-
The gross profit percentage is multiplied by total sales to determine sales at cost The total sales at cost are deducted from beginning inventory plus purchases to determine ending inventory...
-
Lower of Cost or Market Frost Companys inventory records for the years 2016 and 2017 reveal the cost and market of the January 1, 2016, inventory to be $125,000. On December 31, 2016, the cast of...
-
5) Pablo Escobar has recently opened a slipper sandal Shop in Brisbane, Australia, a store that specializes in fashionable sleeper sandals. Pablo has just received a degree in business and he is...
-
Determine the length of side BC of the triangular plate. Solve the problem by finding the magnitude of r BC ; then check the result by first finding ?, r AB , and r AC and then using the cosine law....
-
Refer to the preceding information for Fast Cools acquisition of Fast Airs common stock. Assume Fast Cool issues 35,000 shares of its $20 fair value common stock for 80% of Fast Airs common stock....
-
During the assembly of an exhaust valve, sufficient distance must be maintained between the valve tip and the cylinder wall. If \(85 \%\) of valve assemblies have the required distance, use Table 1...
-
1. Banks are required by law to keep a fraction of their deposits as ______. 2. When reserves do not pay interest, banks prefer to keep reserves rather than make loans. ______ (True/False) 3. If the...
-
Let the S&P 500 index have: S 0 = $ 2,500 \sigma = 35% \delta = 2% continuously compounded r= 4% What is the price of a bond that after 2 years pays S 0 + max(0, S 2 S 0 )?
-
A trust officer at the Blacksburg National Bank needs to determine how to invest $100,000 in the following collection of bonds to maximize the annual return. The officer wants to invest at least 50%...
-
The inventory of Royal Decking consisted of five products. Information about the December 31, 2018, inventory is as follows: Selling costs consist of a sales commission equal to 10% of selling price...
-
On September 22, 2018, a flood destroyed the entire merchandise inventory on hand in a warehouse owned by the Rocklin Sporting Goods Company. The following information is available from the records...
-
The following transactions occurred during 2020. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated...
-
Consider the following system of periodic processes executing on a single CPU: Can we add another instance of P1 to the system and meet all the deadlines using RMS? Process Execution time Deadline...
-
Develop a generic streaming interface for an accelerator. The interface should allow streaming data to be read by the accelerator from the hosts memory. It should also allow streaming data to be...
-
What criteria are used to classify species in an evolutionary classification system?
-
Why is bacterial decomposition important?
-
Explain how bacteria that are autotrophs and chemoautotrophs obtain food.
-
The cost curves for a firm producing a digital product such as an app or an online course or an e-book are quite different than those of a firm producing a physical product such as clothing or food...
-
A heat engine has a heat input of 3 Ã 104 Btu/h and a thermal efficiency of 40 percent. Calculate the power it will produce, in hp. Source 3 x 10 Btu/h 40% HE Sink
-
Marin Companys general ledger indicates a cash balance of $22,340 as of September 30, 2021. Early in October Marin received a bank statement indicating that during September Marin had an NSF check of...
-
Shan Enterprises received a bank statement listing its May 31, 2021, bank balance as $47,582. Shan determined that as of May 31 it had cash receipts of $2,500 that were not yet deposited and checks...
-
Thaler Inc. holds a $1 million receivable ($800,000 principal, $200,000 accrued interest) from Einhorn Industries, and agrees to settle the receivable outright for $900,000 given Einhorns difficult...
-
If you could model yourself after one or more of the historical leaders we discussed in this chapter, whom would you model yourself after? Please learn more about the leader you chose. Identify two...
-
You are a market researcher. You've been asked to compare the way 2 news sources present the same issue for possible consideration by your market research department and public relations staff....
-
Explain about the application software available for Unix operating system?
Study smarter with the SolutionInn App