Monty Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is...

 

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Monty Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company's inventory records as of December 31, 2025. Item Quantity Unit Cost Replacement Cost/Unit Estimated Selling Price/Unit Completion & Disposal Cost/Unit Normal Profit Margin/Unit A 1,400 $7.73 $8.65 $10.82 $1.55 $1.85 B 1,100 8.45 8.14 9.68 0.93 1.24 C 1,300 5.77 5.56 7.42 1.18 0.62 D 1,300 3.91 4.33 6.49 0.82 1.55 E 1,700 6.59 6.49 6.90 0.72 1.03 Greg Forda is an accounting clerk in the accounting department of Monty Co. and he cannot understand why the market value keeps changing from replacement cost to net realizable value to something that he cannot even figure out. Greg is very confused, and he is the one who records inventory purchases and calculates ending inventory. You are the manager of the department and an accountant. Your answer is correct. Calculate the lower-of-cost-or-market using the individual-item approach. (Round answers to 2 decimal places, eg. 78.73.J Lower-of-Cost-or-Market (Per unit basis) Item A $ 7.73 Item B $ 8.14 Item C $ 5.62 Item D $ 3.91 Item E $ 6.18 eTextbook and Media List of Accounts Your answer is partially correct. Show the journal entry he will need to make in order to write down the ending inventory from cost to market. [List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Cost of Goods sold Method: Cost of Goods Sold Inventory Loss method: Debit Credit eTextbook and Media List of Accounts $1,233 $1.2 Monty Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company's inventory records as of December 31, 2025. Item Quantity Unit Cost Replacement Cost/Unit Estimated Selling Price/Unit Completion & Disposal Cost/Unit Normal Profit Margin/Unit A 1,400 $7.73 $8.65 $10.82 $1.55 $1.85 B 1,100 8.45 8.14 9.68 0.93 1.24 C 1,300 5.77 5.56 7.42 1.18 0.62 D 1,300 3.91 4.33 6.49 0.82 1.55 E 1,700 6.59 6.49 6.90 0.72 1.03 Greg Forda is an accounting clerk in the accounting department of Monty Co. and he cannot understand why the market value keeps changing from replacement cost to net realizable value to something that he cannot even figure out. Greg is very confused, and he is the one who records inventory purchases and calculates ending inventory. You are the manager of the department and an accountant. Your answer is correct. Calculate the lower-of-cost-or-market using the individual-item approach. (Round answers to 2 decimal places, eg. 78.73.J Lower-of-Cost-or-Market (Per unit basis) Item A $ 7.73 Item B $ 8.14 Item C $ 5.62 Item D $ 3.91 Item E $ 6.18 eTextbook and Media List of Accounts Your answer is partially correct. Show the journal entry he will need to make in order to write down the ending inventory from cost to market. [List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Cost of Goods sold Method: Cost of Goods Sold Inventory Loss method: Debit Credit eTextbook and Media List of Accounts $1,233 $1.2

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