Unit Replacement Product ABCDE A Quantity 1,000 Unit Cost $ 14 Cost $ 16 Forest Company...

 

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Unit Replacement Product ABCDE A Quantity 1,000 Unit Cost $ 14 Cost $ 16 Forest Company has five products in its inventory. Information about ending inventory follows. Unit Selling Price $ 20 B 800 19 15 22 C 700 7 6 12 E 600 800 11 18 8 16 10 17 The cost to sell for each product consists of a 15 percent sales commission. The normal profit for each product is 35 percent of th selling price. Required: 1. Determine the carrying value of ending inventory, assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Determine the carrying value of inventory, assuming the LCM rule is applied to the entire inventory. 3. Assuming inventory write-downs are common for Forest, record any necessary year-end adjusting entry based on the amou calculated in requirement 2. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the carrying value of ending inventory, assuming the lower of cost or market (LCM) rule is applied to individual products. Note: Do not round intermediate calculations. Product (units) RC NRV NRV minus NP Market Cost Inventory value A (1,000) $ 14,000 B (800) 15,200 C (700) 4,900 D (600) 6,600 E (800) 14,400 Total $ 0 S 55,100 $ 0 Unit Replacement Product ABCDE A Quantity 1,000 Unit Cost $ 14 Cost $ 16 Forest Company has five products in its inventory. Information about ending inventory follows. Unit Selling Price $ 20 B 800 19 15 22 C 700 7 6 12 E 600 800 11 18 8 16 10 17 The cost to sell for each product consists of a 15 percent sales commission. The normal profit for each product is 35 percent of th selling price. Required: 1. Determine the carrying value of ending inventory, assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Determine the carrying value of inventory, assuming the LCM rule is applied to the entire inventory. 3. Assuming inventory write-downs are common for Forest, record any necessary year-end adjusting entry based on the amou calculated in requirement 2. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the carrying value of ending inventory, assuming the lower of cost or market (LCM) rule is applied to individual products. Note: Do not round intermediate calculations. Product (units) RC NRV NRV minus NP Market Cost Inventory value A (1,000) $ 14,000 B (800) 15,200 C (700) 4,900 D (600) 6,600 E (800) 14,400 Total $ 0 S 55,100 $ 0

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