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 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, 2021, assuming the LCM rule is applied to the entire inventory.
3. Assuming inventory write-downs are common for Forester, record any necessary year-end adjusting entry based on the amount calculated in requirement 2 .
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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....
Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Unit Unit Unit Selling Replacement Price Product Quantity Cost Cost $ 11 $13 $17 900 A 500 16 12 19 В 900 3 9 С 600 8 7 D 700 15 13 14 Е The cost to sell for each product consists of a 20 percent sales commission. The normal profit for each product is 30 percent of the selling price. Required: 1. Determine...
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 600 $ 30 $ 32 $ 36 B 1,000 35 31 38 C 900 23 22 28 D 800 27 24 26 E 700 34 32 33 The cost to sell for each product consists of a 10 percent sales commission. The normal profit for each product is 25 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. 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...
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, 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. Informationabout the December 31, 2021, inventory follows....
Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows.ProductQuantityUnitCostUnitReplacementCostUnitSellingPriceA800$27$29$33B800322835C600201925D800242123E500312930The cost to sell for each product consists of a 15 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, 2021, assuming the LCM rule...
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.ProductQuantityCostCostPriceA800$13$15$19B600181421C5006511D9001079E600171516The cost to sell for each product consists of a 20 percent sales commission. The normal profit percentage for each product is 30 percent of the selling price.Required:1. Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or market (LCM) rule is applied to individual products.2a. Determine the carrying value of inventory at December 31, 2018, assuming the...
HELP Forester Company has five products in its inventory. Information about the December 31, 2018, inventory...
HELP
Forester Company has five products in its inventory. Information about the December 31, 2018, inventory follows. Unit Unit Unit Replacement Cost Selling Price Product Quantity 1,000 800 Cost A S 14 $16 $20 22 B 19 7 15 C 700 6 12 D 600 11 8 10 E 800 18 16 17 The cost to sell for each product consists of a 15 percent sales commission. The normal profit percentage for each product is 35 percent of the selling...
help Forester Company has five products in its inventory Information about the December 2013 Unit Cost...
help
Forester Company has five products in its inventory Information about the December 2013 Unit Cost 5 16 21 Replacement Cost $18 17 Unit Selling Price 522 Product Quantity 900 1,000 900 1,000 900 20 The cost to sell for each product consists of a 10 percent sales commission. The normal profit percentage for product is 40 percent of the selling price. Required: 1. Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or...
Decker Company has five products in its inventory. Information about the December 31, 2021, inventory follows....
Decker Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Product Quantity Unit Cost Unit Selling Price A 1,100 $ 30 $ 36 B 900 35 38 C 800 4 12 D 400 11 10 E 800 34 33 The cost to sell for each product consists of a 10 percent sales commission. Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or net realizable value...
Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Unit Unit Unit Selling Replacement Price Product Quantity Cost Cost $ 11 $13 $17 900 A 500 16 12 19 В 900 3 9 С 600 8 7 D 700 15 13 14 Е The cost to sell for each product consists of a 20 percent sales commission. The normal profit for each product is 30 percent of the selling price. Required: 1. Determine...
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....
HELP
Forester Company has five products in its inventory. Information about the December 31, 2018, inventory follows. Unit Unit Unit Replacement Cost Selling Price Product Quantity 1,000 800 Cost A S 14 $16 $20 22 B 19 7 15 C 700 6 12 D 600 11 8 10 E 800 18 16 17 The cost to sell for each product consists of a 15 percent sales commission. The normal profit percentage for each product is 35 percent of the selling...
help
Forester Company has five products in its inventory Information about the December 2013 Unit Cost 5 16 21 Replacement Cost $18 17 Unit Selling Price 522 Product Quantity 900 1,000 900 1,000 900 20 The cost to sell for each product consists of a 10 percent sales commission. The normal profit percentage for product is 40 percent of the selling price. Required: 1. Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or...
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