Question

Wolverine Corp. (Wolverine) reports its inventory at the lower of cost and NRV. Wolverine has five inventory categories. You are provided with the following cost and NRV information about each category on December 31, 2017, Wolverine’s year-end:


You later receive the following information about Wolverine’s inventory on March 31,
2018, the end of the company’s first quarter:



Required:
a. What amount should Wolverine report on its balance sheet for inventory on December 31, 2017?
b. What is the amount of writedown required on December 31, 2017?
c. Record any journal entries required on December 31, 2017 to account for the writedown.
d. Are any adjustments needed to inventory on March 31, 2018? Describe and explain any adjustments required and prepare any journal entries that are needed.
e. What amount should Wolverine report on its balance sheet for inventory on March 31, 2018?


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  • CreatedFebruary 26, 2015
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