The following information pertains to James Hardware s ending inventory for
The following information pertains to James Hardware’s ending inventory for the current year:
Required
a. Determine the value of the ending inventory using the lower-of-cost-or-market rule applied to
(1) Each individual inventory item and
(2) The inventory in aggregate.
b. Prepare any necessary journal entries, assuming the decline in value is immaterial, using the
(1) Individual method and
(2) Aggregate method.
James Hardware uses the perpetual inventory system.
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