Allegro Music sells musical equipment. A detailed list of Allegro Music’s inventory follows: Inventory item Number...

Allegro Music sells musical equipment. A detailed list of Allegro Music’s inventory follows:

Inventory item	Number of units — year end	Cost per unit	Total cost	NRV* per unit	Total NRV	LCNRV**
Chime Set	3	$750	2,250	790	2,370
Cymbals	4	70	280	85	340
Drum Sets	3	450	1,350	525	1,575
Flutes	5	650	3,250	775	3,875
Violins	3	1,500	4,500	1,650	4,950
Guitars	7	62	434	45	315
Guitars-acoustic	9	125	1,125	132	1,188
Guitars-electric	12	190	2,280	225	2,700
Keyboards	4	2,200	8,800	2,100	8,400
Pianos-entry	3	2,300	6,900	2,500	7,500
Pianos-introductory	5	4,500	22,500	4,900	24,500
Pianos-intermediate	2	12,000	24,000	14,200	28,400
Pianos-professional	1	22,500	22,500	25,000	25,000
Pianos-upright	2	5,000	10,000	7,500	15,000
Recorders	25	7	175	10	250
Saxophones	3	575	1,725	675	2,025
Triangles	5	55	275	65	325
Xylophones	4	245	980	300	1,200
			TOTAL= 113,324		Total= 129,913

*NRV = net realizable value
**LCNRV = lower of cost and net realizable value

Required:
Complete the schedule above and prepare the year-end adjusting entry to record the inventory at the lower of cost and net realizable value.

Expert Solution

Thank you for your patience. Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

Allegro Music	A	B	*C=AB**	D	*E=AD**	F= Lower of C or E
Inventory item	Number of units	Cost per unit	Total cost	*NRV per unit**	Total NRV	LCNRV**
Chime Set	3.00	750.00	2,250.00	790.00	2,370.00	2,250.00
Cymbals	4.00	70.00	280.00	85.00	340.00	280.00
Drum Sets	3.00	450.00	1,350.00	525.00	1,575.00	1,350.00
Flutes	5.00	650.00	3,250.00	775.00	3,875.00	3,250.00
Violins	3.00	1,500.00	4,500.00	1,650.00	4,950.00	4,500.00
Guitars	7.00	62.00	434.00	45.00	315.00	315.00
Guitars-acoustic	9.00	125.00	1,125.00	132.00	1,188.00	1,125.00
Guitars-electric	12.00	190.00	2,280.00	225.00	2,700.00	2,280.00
Keyboards	4.00	2,200.00	8,800.00	2,100.00	8,400.00	8,400.00
Pianos-entry	3.00	2,300.00	6,900.00	2,500.00	7,500.00	6,900.00
Pianos-introductory	5.00	4,500.00	22,500.00	4,900.00	24,500.00	22,500.00
Pianos-intermediate	2.00	12,000.00	24,000.00	14,200.00	28,400.00	24,000.00
Pianos-professional	1.00	22,500.00	22,500.00	25,000.00	25,000.00	22,500.00
Pianos-upright	2.00	5,000.00	10,000.00	7,500.00	15,000.00	10,000.00
Recorders	25.00	7.00	175.00	10.00	250.00	175.00
Saxophones	3.00	575.00	1,725.00	675.00	2,025.00	1,725.00
Triangles	5.00	55.00	275.00	65.00	325.00	275.00
Xylophones	4.00	245.00	980.00	300.00	1,200.00	980.00
Ending Inventory			113,324.00		129,913.00	112,805.00
Reduction in value			519.00

Year end entry
Account	Debit $	Credit $
Loss on valuation of inventory	519.00
Inventory		519.00

ekkarill92 answered 2 years ago

Allegro Music sells musical equipment. A detailed list of allegro music is inventory follows; Inventory item...

Allegro Music sells musical equipment. A detailed list of allegro music is inventory follows; Inventory item Number of units Cost per unit Total cost NRV per unit Total NRV LCNRV Chime set 3 $750 $2250 $790 $2370 Cymbals 4 70 280 85 340 Drum sets 3 450 1350 525 1575 Flutes 5 650 3250 775 3875 Violins 3 1500 4500 1650 4950 Guitars 7 62 434 45 315 Guitars acoustic 9 125 1125 132 1188 Guitars electric 12 190 2280...

Mark’s Music is a store that buys and sells musical instruments and uses a perpetual inventory...

Mark’s Music is a store that buys and sells musical instruments and uses a perpetual inventory system. Transactions for the business are shown below: Nov. 2 Purchased two electric guitars from Fender Supply Limited, on account, at a cost of $850 each, terms 1/10, n/60. 4 Made a cash sale of two keyboards for a total invoice price of $2,300. The cost of each keyboard was $900. 5 Received a credit from Western Acoustic Inc. for the return of an...

Beginning inventory, purchases, and sales for an inventory item are as follows: Purchases Cost of Goods...

Beginning inventory, purchases, and sales for an inventory item are as follows: Purchases Cost of Goods Sold Inventory Event Unit Cost Total Cost Unit Cost Total Cost Total Cost QTY Bought Qty sold Qty Unit Cost Beginning Inventory 150 755 First Sale 120 First Purchase 400 785 Second Sale 200 Second Purchase 300 805 Sale 290 The firm uses the perpetual inventory system and there are 240 units of the item on hand at the end of the year A....

Information about Vinzant Company’s inventory of one item follows. Explanation Number of Units Unit Cost Beginning...

Information about Vinzant Company’s inventory of one item follows. Explanation Number of Units Unit Cost Beginning inventory, January 1 115 $ 365 Purchases: April 135 370 August 145 375 October 120 377 Ending inventory, December 31 115 Questions: Compute the cost of the ending inventory under the average cost method. Compute the cost of the ending inventory under the FIFO method. Compute the cost of the ending inventory under the LIFO method. Answer each of the 3 questions by entering...

Blue Company follows the practice of pricing its inventory at LCNRV, on an individual-item basis. Item...

Blue Company follows the practice of pricing its inventory at LCNRV, on an individual-item basis. Item No. Quantity Cost per Unit Estimated Selling Price Cost to Complete and Sell 1320 1,800 $3.90 $5.49 $1.95 1333 1,500 3.29 4.15 1.22 1426 1,400 5.49 6.10 1.71 1437 1,600 4.39 3.90 1.65 1510 1,300 2.75 3.97 1.71 1522 1,100 3.66 4.76 0.98 1573 3,600 2.20 3.05 1.46 1626 1,600 5.73 7.32 1.83 From the information above, determine the amount of Blue Company inventory....

Larkspur Company follows the practice of pricing its inventory at LCNRV, on an individual-item basis. Item...

Larkspur Company follows the practice of pricing its inventory at LCNRV, on an individual-item basis. Item No. Quantity Cost per Unit Estimated Selling Price Cost to Complete and Sell 1320 1,300 $4.00 $5.63 $2.00 1333 1,000 3.38 4.25 1.25 1426 900 5.63 6.25 1.75 1437 1,100 4.50 4.00 1.69 1510 800 2.81 4.06 1.75 1522 600 3.75 4.88 1.00 1573 3,100 2.25 3.13 1.50 1626 1,100 5.88 7.50 1.88 From the information above, determine the amount of Larkspur Company inventory....

Problem 13-12 Pronghorn Music Emporium carries a wide variety of musical instruments, sound reproduction equipment, recorded...

Problem 13-12 Pronghorn Music Emporium carries a wide variety of musical instruments, sound reproduction equipment, recorded music, and sheet music. Pronghorn uses two sales promotion techniques—warranties and premiums—to attract customers. Musical instruments and sound equipment are sold with a 1-year warranty for replacement of parts and labor. The estimated warranty cost, based on past experience, is 1% of sales. The premium is offered on the recorded and sheet music. Customers receive a coupon for each dollar spent on recorded music...

Problem 13-12 Sunland Music Emporium carries a wide variety of musical instruments, sound reproduction equipment, recorded...

Problem 13-12 Sunland Music Emporium carries a wide variety of musical instruments, sound reproduction equipment, recorded music, and sheet music. Sunland uses two sales promotion techniques—warranties and premiums—to attract customers. Musical instruments and sound equipment are sold with a one-year warranty for replacement of parts and labor. The estimated warranty cost, based on past experience, is 2% of sales. The premium is offered on the recorded and sheet music. Customers receive a coupon for each dollar spent on recorded music...

Beginning inventory, purchases, and sales for Item Gidget are as follows: Sept. 1 Inventory 80 units...

Beginning inventory, purchases, and sales for Item Gidget are as follows: Sept. 1 Inventory 80 units at $175 10 Sale 65 units 18 Purchase 75 units at $180 27 Sale 70 units Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on September 27 and (b) the inventory on September 30. a. Cost of merchandise sold on September 27 $ b. Inventory on September 30 $

Beginning inventory, purchases, and sales for Item ER27 are as follows: July 1 Inventory 42 units...

Beginning inventory, purchases, and sales for Item ER27 are as follows: July 1 Inventory 42 units @ $22 9 Sale 34 units 13 Purchase 40 units @ $24 28 Sale 16 units Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on July 28 and (b) the inventory on July 31. a. Cost of merchandise sold on July 28 $ b. Inventory on July 31 Beginning inventory, purchases, and sales...

Question