Homework Answers
| Product | Selling Price (a) | Estimated selling cost (b) | Net Realizable Value (c = a-b) | NRV - NP [c - (c*20/100) | Replacement Cost | Market Value ** | Cost | LCM (Lower of cost and market value) |
| V | $100,000 | $15,000 | $85,000 | $68,000.0 | $55,000 | $68,000 | $50,000 | $50,000 |
| W | $120,000 | $30,000 | $90,000 | $72,000.0 | $97,000 | $90,000 | $100,000 | $90,000 |
| X | $90,000 | $15,000 | $75,000 | $60,000.0 | $70,000 | $70,000 | $80,000 | $70,000 |
| Y | $100,000 | $15,000 | $85,000 | $68,000.0 | $95,000 | $85,000 | $90,000 | $85,000 |
| Z | $110,000 | $14,000 | $96,000 | $76,800.0 | $92,000 | $92,000 | $95,000 | $92,000 |
| ** Market value is taken in between three values of Replacement cost, Net realizable value and NRV - NP | ||||||||
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2. The inventory of Hendrix Company consists of five products as summarized below: Product Cost $...
Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is...
Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows: Product 101 102 103 104 Total Cost $120,000 90,000 60,000 30,000 Total Replacement Cost $100,000 85,000 40,000 28, 000 Total Net Realizable Value $100,000 110,000 50,000 50,000 The normal profit is 25% of total cost. Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products. 2....
1. The Hendrix Company sells four products that can be grouped into two major categories. Hendrix uses the FIFO cos...
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Tatum Company has four products in its inventory
Tatum Company has four products in its inventory. Information about the december 31, 2009, inventory is as follows:product total total total Net cost replacement realizable cost Value101 $120,000 110,000 100,000102 90,000 85,000 110,000103 60,000 40,000 50,000104 30,000 28,000 50,000The normal gross profit percentage is 25% of cost.Determine the balance sheet inventory carrying value at december 31,2009, assuming the LCM rule is applied to individual products.Assuming that Tatum recognizes an inventory write-down as a separate income statement item, determine the amount...
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Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows....
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Tatum Company has four products in its inventory. Information about the December 31, 2018, inventory is...
Tatum Company has four products in its inventory. Information about the December 31, 2018, inventory is as follows: Product Total Cost Total Net Realizable Value 101 $ 120,000 $ 100,000 102 90,000 110,000 103 60,000 50,000 104 30,000 50,000 Required: 1. Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. 2. Assuming that inventory write-downs are common for Tatum Company, record any necessary...
hello, can someone provide a detailed answer please thank you 18. inventory CHAPTER 9 Inventories: Additional...
hello,
can someone provide a detailed answer please
thank you
18. inventory CHAPTER 9 Inventories: Additional Issues 499 F9-6 lower of cost or This is a variation of E 9-3, modified to focus on the lower of cost or market.] Tatum Company has four products in its inventory. Information about the December 31, 2018, inventory is as follows: market .LO9-1 Product Total Cost $120,000 90,000 60,000 30,000 101 102 103 Total Replacement Cost $100,000 85,000 40,000 28.000 Total Net Realizable...
Herman Company has three products in its ending inventory
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The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory...
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The inventory of Royal Decking consisted of five products. Information about the December 31, 2021, inventory...
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Tatum Company has four products in its inventory. Information about the December 31, 2021, inventory is as follows: Product 101 102 103 104 Total Cost $120,000 90,000 60,000 30,000 Total Replacement Cost $100,000 85,000 40,000 28, 000 Total Net Realizable Value $100,000 110,000 50,000 50,000 The normal profit is 25% of total cost. Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products. 2....
1. The Hendrix Company sells four products that can be grouped into two major categories. Hendrix uses the FIFO cost flow assumption. Sales commissions and transportation costs average 10% of the selling price. The inventory of Hendrix Company consists of four products as summarized below. Products A and B are in Category 1 and products C and D are in Category 2. Product Cost $ 120,000 175,000 160,000 45,000 Selling Price $ 160,000 180,000 160,000 60,000 a) Apply the LCNRV...
hello,
can someone provide a detailed answer please
thank you
18. inventory CHAPTER 9 Inventories: Additional Issues 499 F9-6 lower of cost or This is a variation of E 9-3, modified to focus on the lower of cost or market.] Tatum Company has four products in its inventory. Information about the December 31, 2018, inventory is as follows: market .LO9-1 Product Total Cost $120,000 90,000 60,000 30,000 101 102 103 Total Replacement Cost $100,000 85,000 40,000 28.000 Total Net Realizable...
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