In: Accounting
Larkspur, Inc. values its inventory at the lower-of-LIFO-cost-or-market. The following information is available from the company’s inventory records as of December 31, 2020.
Item |
Quantity |
Unit |
Replacement |
Estimated Selling |
Completion & Disposal |
Normal Profit |
||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
X490 | 12,444 | $15.25 | $14.58 | $17.08 | $3.66 | $4.15 | ||||||||||
X512 | 6,039 | 8.54 | 9.15 | 10.86 | 0.31 | 2.20 | ||||||||||
X682 | 21,960 | 23.18 | 22.69 | 38.49 | 3.97 | 10.98 | ||||||||||
Z195 | 15,250 | 17.39 | 17.08 | 24.16 | 1.71 | 7.02 | ||||||||||
Z846 | 10,492 | 14.64 | 15.56 | 17.02 | 2.56 | 1.34 |
Calculate the lower-of-cost-or-market using the individual-item approach. (Round answers to 2 decimal places, e.g. 52.75.)
Lower-of-Cost-or-Market |
||
---|---|---|
X490 |
$enter a dollar amount |
|
X512 |
$enter a dollar amount |
|
X682 |
$enter a dollar amount |
|
X195 |
$enter a dollar amount |
|
X846 |
$enter a dollar amount |
eTextbook and Media
List of Accounts
Show the journal entries Larkspur, Inc. will need to make in order to write down the ending inventory from cost to market. Assume this is Larkspur’s first year of operations. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)
Account Titles and Explanation |
Debit |
Credit |
---|---|---|
Cost of Goods sold Method: | ||
enter an account title |
enter a debit amount |
enter a credit amount |
enter an account title |
enter a debit amount |
enter a credit amount |
Loss method: | ||
enter an account title |
enter a debit amount |
enter a credit amount |
enter an account title |
enter a debit amount |
enter a credit amount |
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