Tatum Company has four products in its inventory. The information on the inventory as of December 31,
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Question:
Tatum Company has four products in its inventory. The information on the inventory as of December 31, 2018 is as follows:
Product | Total cost | Total Net Achievement Value | ||||||||
101 | ps | 120,000 | ps | 100,000 | ||||||
102 | 90.000 | 110,000 | ||||||||
103 | 60.000 | 50,000 | ||||||||
104 | 30,000 | 50,000 | ||||||||
Required:
1. Determine the book value of the inventory as of December 31, 2018, assuming that the rule of the lower of cost or net realizable value (LCNRV) is applied to the individual products.
2. Assuming inventory markdowns are common for the Tatum Company, record any necessary year-end adjustment entries.
Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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