ZuoTi.Pro
Question

Information about Q-mart's inventory appears in the following table. When LCM is applied to the whole...

Information about Q-mart's inventory appears in the following table. When LCM is applied to the whole inventory, the Merchandise Inventory account must be adjusted from the $1,700 recorded cost down to the $1,620 market amount. Demonstrate the required adjusting entry by choosing the correct answer below.

Item

Units

Cost/

Unit

Market/

Unit

Total

Cost

Total

Market

Bikes:

Bike A

10

$50

$52

$500

$520

Bike B

20

$30

$28

$600

$560

Scooters:

Scooter A

10

$10

$9

$100

$90

Scooter B

25

$20

$18

$500

$450

Totals

$1,700

$1,620

Debit Cost of Goods Sold $80.

Credit Cost of Goods Sold $80.

Credit Loss on Inventory $80.

Debit Merchandise Inventory $80.

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

0 0
Add a comment
Know the answer?
Add Answer to:
Information about Q-mart's inventory appears in the following table. When LCM is applied to the whole...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Cypress Co. has the following LIFO perpetual inventory records: Date December 1 December 7 December 18...

    Cypress Co. has the following LIFO perpetual inventory records: Date December 1 December 7 December 18 December 31 $1,700 Purchases Cost of Goods Sold Inventory on Hand $4,050 $5,250 $4,250 $5,950 $1,200 $1,000 The current replacement cost of the ending inventory is $3,200. To apply the lower-of-cost-or-market rule, the journal entry would be: O A. Debit Cost of Goods Sold $2,750, credit Inventory $2,750 O B. Debit Inventory $2,750, credit Cost of Goods Sold $$2,750 O C. Debit inventory $1,000,...

  • Forester Company has five products in its inventory. Information about the December 31, 2018, inventory follows...

    Forester Company has five products in its inventory. Information about the December 31, 2018, inventory follows Unit Unit Replacement Selling Price Unit Cost Quantity 900 900 Cost Product $31 $ 25 30 $27 26 A 33 B 23 17 19 18 500 C 21 22 700 D 28 27 29 500 E The cost to sell for each product consists of a 10 percent sales commission. The normal profit percentage for each product is 35 percent of the selling price....

  • Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows....

    Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Product Quantity Unit Cost Unit Replacement Cost Unit Selling Price A 1,000 $ 28 $ 30 $ 34 B 900 33 29 36 C 500 21 20 26 D 600 25 22 24 E 700 32 30 31 The cost to sell for each product consists of a 10 percent sales commission. The normal profit for each product is 35 percent of the selling...

  • Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows....

    Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows.ProductQuantityUnit CostUnit Replacement CostUnit Selling PriceA1,000$28$30$34B900332936C500212026D600252224E700323031The cost to sell for each product consists of a 10 percent sales commission. The normal profit for each product is 35 percent of the selling price.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. Determine the carrying value of inventory at December 31,...

  • Altira Corporation uses a periodic inventory system. The following information related to its merchandise inventory during...

    Altira Corporation uses a periodic inventory system. The following information related to its merchandise inventory during the month of August 2018 is available: Aug.1 Inventory on hand-10,500 units: cost $8.40 each 8 Purchased 29,000 units for $7.40 each. 14 Sold 20, 500 units for $13.90 each. 18 Purchased 15, 500 units for $6.90 each 25 Sold 19, 500 units for $12.90 each. 31 Inventory on hand-15,000 units. Required: Determine the inventory balance Altira would report in its August 31, 2018,...

  • Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows....

    Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Product Quantity Unit Cost Unit Replacement Cost Unit Selling Price A 900 $ 29 $ 31 $ 35 B 900 34 30 37 C 900 22 21 27 D 900 26 23 25 E 1,000 33 31 32 The cost to sell for each product consists of a 20 percent sales commission. The normal profit for each product is 40 percent of the selling...

  • A physical inventory of Liverpool Company taken at December 31 reveals the following Per Unit Units...

    A physical inventory of Liverpool Company taken at December 31 reveals the following Per Unit Units Cost Market 348 5103 263 124 329 99 207 S111 114 10 65 Ites Car audio equipment Speakers Stereos Amplifiers Subwoofers Security equipment Alarm Looks Cameras Binocular equipment Tripods Stabilizers 153 483 294 215 163 106 325 335 188 173 87 108 97 110 Required: 1. Calculate the lower of cost or market for the inventory applied separately to each item, 2. If the...

  • Required information The following information applies to the questions displayed below.] Greg's Bicycle Shop has the...

    Required information The following information applies to the questions displayed below.] Greg's Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. Greg's Bicycle Shop uses a periodic inventory system. Unit Cost $250 Total Cost Units Transactions Date $ 5,000 March Маrch 20 Beginning inventory Sale ($400 each) 1 15 2,700 270 10 Purchase March March 17 March 22 8 10 Sale ($450 each) Purchase 2,800 28о 12 Sale ($475 each) March...

  • Required information [The following information applies to the questions displayed below.) Greg's Bicycle Shop has the...

    Required information [The following information applies to the questions displayed below.) Greg's Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. Greg's Bicycle Shop uses a periodic inventory system. Date Transactions Units Unit Cost Total Cost March 1 Beginning inventory 20 $170 $3,400 March 5 Sale ($240 each) 15 March 9 Purchase 10 190 1,900 March 17 Sale ($290 each) В March 22 Purchase 10 200 2,000 March 27 Sale ($315...

  • Required information [The following information applies to the questions displayed below.) Greg's Bicycle Shop has the...

    Required information [The following information applies to the questions displayed below.) Greg's Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. Greg's Bicycle Shop uses a periodic inventory system. Unit Cost $210 Total Cost $ 4,200 Date March 1 March 5 March 9 March 17 March 22 March 27 March 30 230 Transactions Beginning inventory Sale ($320 each) Purchase Sale ($370 each) Purchase Sale ($395 each) Purchase Units 20 15 10...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT