Question

Brooks Company carries three inventory items. The following information pertains to the ending inventory: Unit Unit Item Quantity 180 Cost $12 Market Value $11 A F 250 13 12 K 174 5 Required a. Determine the ending inventory that Brooks will report on the balance sheet, assuming that it applies the lower-of-cost-or-market rule to individual inventory items. 53 Ending inventory b. Prepare the necessary journal entry, assuming the decline in value was immaterial. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record entry for cost of goods sold. Note: Enter debits before credits General Journal Debit Credit Event

Answer 1

Griven Information of Broulis compary a Polloss CABowl Ending joventory) Item Inventory) Quantity Unit Market value $ 11 Wert best iso Unit cost $12 $13 $s 250 174 $12 Sg Less. Trile a) Determination of ending Inventory The Inventory will be shown in the balance sheel at Cost lor) Marked rice whichever is every is to be considered for Individual enverly Item them Quantity Unit Cost Unit Marked Toky Cost Tolal Market value theann () (c d (l= bx) (bxd on Balance sheet Cloryf whichevert is lower J 180 $11 $2160 $1980 $1980 250 $13 $12 $3000 $ 3000 174 $5 $8 . $870 $1392 $870 56280 Tolal Joventory Value tobe shown in Balance shool$6372 $12 by toonality Parliculars Debit Credil P>ofil Slloss ALC.-P 430 To Inventory A 180 To inventory 250 (Being decrease in Joventoy values * If the amount is immaterial entry is not much Required. But at depends on Company policy