Question
In: Accounting
Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2021...
Almaden Hardware Store sells two product categories, tools and
paint products. Information pertaining to its 2021 year-end
inventory is as follows:
| Inventory, by Product Category |
Quantity | Per Unit Cost |
Net Realizable Value | ||||||||
| Tools: | |||||||||||
| Hammers | 110 | $ | 4.70 | $ | 5.20 | ||||||
| Saws | 170 | 9.70 | 8.70 | ||||||||
| Screwdrivers | 270 | 1.70 | 2.30 | ||||||||
| Paint products: | |||||||||||
| 1-gallon cans | 470 | 5.70 | 4.70 | ||||||||
| Paint brushes | 110 | 3.70 | 4.20 | ||||||||
Required:
1. Determine the carrying value of inventory at
year-end, assuming the lower of cost or net realizable value
(LCNRV) rule is applied to (a) individual products, (b) product
categories, and (c) total inventory.
2. Assuming inventory write-downs are common for
Almaden, record any necessary year-end adjustment amount for each
of the LCNRV applications in requirement 1.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2018...
Almaden Hardware Store sells two product categories, tools and
paint products. Information pertaining to its 2018 year-end
inventory is as follows: Inventory, by Product Category Quantity
Per Unit Cost Net Realizable Value Tools: Hammers 110 $ 4.70 $ 5.20
Saws 170 9.70 8.70 Screwdrivers 270 1.70 2.30 Paint products:
1-gallon cans 470 5.70 4.70 Paint brushes 110 3.70 4.20
Required: 1. Determine the carrying value of inventory at
year-end, assuming the lower of cost or net realizable value
(LCNRV) rule...
Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2018...
Almaden Hardware Store sells two product categories, tools and
paint products. Information pertaining to its 2018 year-end
inventory is as follows: Inventory, by Product Category Quantity
Per Unit Cost Net Realizable Value Tools: Hammers 110 $ 4.70 $ 5.20
Saws 170 9.70 8.70 Screwdrivers 270 1.70 2.30 Paint products:
1-gallon cans 470 5.70 4.70 Paint brushes 110 3.70 4.20
Required: 1. Determine the carrying value of inventory at
year-end, assuming the lower of cost or net realizable value
(LCNRV) rule...
Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2018...
Almaden Hardware Store sells two product categories, tools and
paint products. Information pertaining to its 2018 year-end
inventory is as follows: Inventory, by Product Category Quantity
Per Unit Cost Net Realizable Value Tools: Hammers 110 $ 5.70 $ 6.20
Saws 270 10.70 9.70 Screwdrivers 370 2.70 3.30 Paint products:
1-gallon cans 570 6.70 5.70 Paint brushes 110 4.70 5.20 Required:
1. Determine the carrying value of inventory at year-end, assuming
the lower of cost or net realizable value (LCNRV) rule...
Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2018...
Almaden Hardware Store sells two product categories, tools and
paint products. Information pertaining to its 2018 year-end
inventory is as follows:
Inventory,
by Product Category
Quantity
Per Unit
Cost
Net Realizable Value
Tools:
Hammers
110
$
5.70
$
6.20
Saws
270
10.70
9.70
Screwdrivers
370
2.70
3.30
Paint products:
1-gallon cans
570
6.70
5.70
Paint brushes
110
4.70
5.20
Required:
1. Determine the carrying value of inventory at
year-end, assuming the lower of cost or net realizable value
(LCNRV) rule...
Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2018...
Almaden Hardware Store sells two product categories, tools and
paint products. Information pertaining to its 2018 year-end
inventory is as follows:
Inventory,
by Product Category
Quantity
Per Unit
Cost
Net Realizable Value
Tools:
Hammers
110
$
5.70
$
6.20
Saws
270
10.70
9.70
Screwdrivers
370
2.70
3.30
Paint products:
1-gallon cans
570
6.70
5.70
Paint brushes
110
4.70
5.20
Required:
1. Determine the carrying value of inventory at
year-end, assuming the lower of cost or net realizable value
(LCNRV) rule...
Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2018...
Almaden Hardware Store sells two product categories, tools and
paint products. Information pertaining to its 2018 year-end
inventory is as follows:
Inventory,
by Product Category
Quantity
Per Unit
Cost
Net Realizable Value
Tools:
Hammers
100
$
5.90
$
6.40
Saws
290
10.90
9.90
Screwdrivers
390
2.90
3.50
Paint products:
1-gallon cans
590
6.90
5.90
Paint brushes
100
4.90
5.40
Required:
1. Determine the carrying value of inventory at
year-end, assuming the lower of cost or net realizable value
(LCNRV) rule...
Rockingham Hardware Store has three departments: Tools, Lumber and Paint. The most recent departmental income statements...
Rockingham Hardware Store has three departments: Tools, Lumber
and Paint. The most recent departmental income statements are shown
below:
Tools
Lumber
Paint
Company Total
Sales
$1,000,000
$525,000
$375,000
$1,900,000
Cost of goods sold
(500,000)
(400,000)
(280,000)
(1,180,000)
Gross profit
500,000
125,000
95,000
720,000
Direct expenses
(200,000)
(100,000)
(97,500)
(397,500)
Allocated expenses
(100,000)
(75,000)
(175,000)
(350,000)
Operating income (loss)
$200,000
$(50,000)
$(177,500)
$(27,500)
Based on this income statement, management is planning on
eliminating both the lumber...
A company sells two products. Information about two products is as follows: Product A: Sales Units-1200...
A company sells two products. Information about two products is
as follows:
Product A:
Sales Units-1200
Selling price per unit-$20
variable costs per unit 11
Product B:
Sales unit- 800
Selling price per unit- $25
Variable costs per unit- 18
If fixed costs are expected to be $12,300, what is the margin of
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A hardware company sells a lot of low-cost, high- volume products. For one such product, it...
A hardware company sells a lot of low-cost, high- volume
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Norman Berhad sells two products; product X and product Y. The information about sales price, variable...
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Product X
Product Y
Selling price per unit
RM50
RM100
Variable expenses per unit
RM30
RM40
The total monthly fixed expenses of the company are RM 270,000.
Norman Berhad wants to generate a sales revenue of RM 1,000,000 in
the next month. To obtain this goal the company has the following
options:
Option 1: Sell 6,000...
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