QUESTION 3. (30 POINTS) Bora Company uses the LCNRV method to evaluate inventory for financial reporting...
Bora Company uses the LCNRV method to evaluate inventory for financial reporting purposes. Information related to inventory at December 31, 2020 appears below. Item A Item B Item C Quantity 50 units 40 units 100 units Estimated Selling Price per unit $70 $35 $30 Purchasing price per unit 40 50 30 Freight-in (transportation) cost per unit 5 5 5 Cost to complete per unit 9 5 7 Cost to sell per unit 6 3 3 Required a) Determine the correct...
Headland Company determined its ending inventory at cost and at LCNRV at December 31, 2020, December 31, 2021, and December 31, 2022, as shown below. Cost NRV 12/31/20 $650,200 $650,200 12/31/21 778,000 705,000 12/31/22 958,800 878,200 Your answer is correct. Prepare the journal entries required at December 31, 2021, and at December 31, 2022, assuming that a perpetual inventory system and the cost-of- goods-sold method of adjusting to LCNRV is used. (Credit account titles are automatically indented when amount is...
Concord Company began operations in 2020 and determined its ending inventory at cost and at LCNRV at December 31, 2020, and December 31, 2021. This information is presented below. Net Realizable Value Cost $322,170 $299,520 12/31/20 12/31/21 409,250 390,440 (a) Prepare the journal entries required at December 31, 2020, and December 31, 2021, assuming inventory is recorded at LCNRV and a perpetual inventory system using the cost-of-goods-sold method. (Credit account titles are automatically indented when amount is entered. Do not...
Concord Company began operations in 2020 and determined its ending inventory at cost and at LCNRV at December 31, 2020, and December 31, 2021. This information is presented below. Net Realizable Value Cost 12/31/20 $322,170 $299,520 12/31/21 409,250 390,440 (a) Prepare the journal entries required at December 31, 2020, and December 31, 2021, assuming inventory is recorded at LCNRV and a perpetual inventory system using the cost-of- goods-sold method. (Credit account titles are automatically indented when amount is entered. Do...
Swifty Company began operations in 2020 and determined its ending inventory at cost and at LCNRV at December 31, 2020, and December 31, 2021. This information is presented below Net Realizable Cost Value $349,780 $326,730 12/31/20 12/31/21 413,940 394,520 (a) Prepare the journal entries required at December 31, 2020, and December 31,2021, assuming inventory is recorded at LCNRV and a perpetual inventory system using the cost-of-goods-sold method. (Credit account titles are automatically indented when amount is entered. Do not indent...
Riegel Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2020, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Estimated selling price Cost - Item D $120 75 30 10 Item E $110 80 30 18 Item F $95 80 25 10 Item G $90 30 35 20 Item H Item $110 $90 50 36 30 30 10 20...
Kingbird Company determined its ending inventory at cost and at
LCNRV at December 31, 2020, December 31, 2021, and December 31,
2022, as shown below.
Cost
NRV
12/31/20
$707,100
$707,100
12/31/21
807,500
741,400
12/31/22
850,600
777,300
(a)
Prepare the journal entries required at December 31, 2021, and at
December 31, 2022, assuming that a perpetual inventory system and
the cost-of-goods-sold method of adjusting to LCNRV is used.
(Credit account titles are automatically indented when
amount is entered. Do not indent...
Question 6 Riegel Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2020, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Item D $120 Estimated selling price Cost Cost to complete Selling costs Item E $110 80 30 75 30 Item F $95 80 25 10 Item G $90 80 35 20 Item H $110 50 30 10 Item...
Marigold Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2020, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Item D $126 Item $116 Item F $100 Item G $95 Item H $116 Item I $95 Estimated selling price Cost Cost to complete Selling costs Using the LCNRV rule, determine the proper unit value for balance sheet reporting purposes...
Blue Company began operations in 2020 and determined its ending inventory at cost and at LCNRV at December 31, 2020, and December 31, 2021. This information is presented below. Cost 12/31/20 $324,730 12/31/21 414,740 Net Realizable Value $299,410 393,550 Prepare the journal entries required at December 31, 2020, and December 31, 2021, assuming that the inventory is recorded at LCNRV and a perpetual inventory system using the cost-of-goods-sold method is used. (Credit account titles are automatically indented when the amount...