1. Determine the book value of inventory as of December 31, 2021, assuming that the least cost...
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Question:
1. Determine the book value of inventory as of December 31, 2021, assuming that the least cost or market (LCM) rule is applied to individual products.
2. Assuming inventory markdowns are common for the Tatum Company, record any necessary year-end adjustment entries.
Tatum Company has four products in its inventory. The information on the inventory as of December 31, 2021 is as below:
Product | Total cost | Total Replacement Cost | Total Net Achievement Value | ||||||
101 | ps | 156,000 | ps | 142.400 | ps | 129,400 | |||
102 | 115,800 | 109,300 | 141,500 | ||||||
103 | 77,100 | 51,400 | 65,000 | ||||||
104 | 39,300 | 36,700 | 65,900 |
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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