Tatum Company has four products in its inventory. Information about ending inventory is as follows: Total...

Transcribed Image Text:

Tatum Company has four products in its inventory. Information about ending inventory is as follows: Total Replacement Total Net Realizable Value Product Total Cost 101 $ 124,000 102 92,800 103 61,800 104 31,000 Cost $ 113,600 $ 103,200 87,600 113,400 41,200 29,000 51,600 51,800 The normal profit is 20% of total cost. Required: 1. Determine the carrying value of inventory 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the carrying value of inventory assuming the lower of cost or market (LCM) rule is applied to individual products. NRV NRV minus NP Market Inventory Value Product Total Cost Replacement cost 101 124,000 $ 113,600 $ 103,200 102 92,800 87,600 113,400 103 61,800 41,200 51,600 104 31,000 29,000 51,800 Totals $ 309,600 < Required 1 Required 2 > EA $ 0 Required 1 Required 2 Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 Record any necessary year-end adjusting entry assuming that inventory write- downs are common for Tatum Company. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Tatum Company has four products in its inventory. Information about ending inventory is as follows: Total Replacement Total Net Realizable Value Product Total Cost 101 $ 124,000 102 92,800 103 61,800 104 31,000 Cost $ 113,600 $ 103,200 87,600 113,400 41,200 29,000 51,600 51,800 The normal profit is 20% of total cost. Required: 1. Determine the carrying value of inventory 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the carrying value of inventory assuming the lower of cost or market (LCM) rule is applied to individual products. NRV NRV minus NP Market Inventory Value Product Total Cost Replacement cost 101 124,000 $ 113,600 $ 103,200 102 92,800 87,600 113,400 103 61,800 41,200 51,600 104 31,000 29,000 51,800 Totals $ 309,600 < Required 1 Required 2 > EA $ 0 Required 1 Required 2 Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 Record any necessary year-end adjusting entry assuming that inventory write- downs are common for Tatum Company. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit