Question
In: Accounting
Blossom Corporation had the following items in inventory as at December 31, 2020: Item No. Quantity...
Blossom Corporation had the following items in inventory as at December 31, 2020:
|
Item No. |
Quantity |
Unit Cost |
NRV |
|
A1 |
140 |
$2.65 |
$4.45 |
|
B4 |
145 |
2.15 |
2.05 |
|
C2 |
105 |
2.45 |
10.85 |
|
D3 |
95 |
8.60 |
7.90 |
Assume that Blossom uses a perpetual inventory system, and that none of the inventory items can be grouped together for accounting purposes.
Prepare the year-end adjusting entry required to adjust to the lower of cost or net realizable value on an item-by-item basis using the direct method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|
December 31, 2020 |
|||
Prepare the year-end adjusting entry required to adjust to the lower of cost or net realizable value on an item-by-item basis using the indirect method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|
December 31, 2020 |
|||
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Blossom Corporation had the following items in inventory as at December 31, 2020: Item No. Quantity...
Blossom Corporation had the following items in inventory as at
December 31, 2020:
Item No.
Quantity
Unit
Cost
NRV
A1
140
$2.65
$4.45
B4
145
2.15
2.05
C2
105
2.45
10.85
D3
95
8.60
7.90
Assume that Blossom uses a perpetual inventory system, and that
none of the inventory items can be grouped together for accounting
purposes.
Prepare the year-end adjusting entry required to adjust to the
lower of cost or net realizable value on an item-by-item basis
using the...
The inventory of Sunland Company on December 31, 2020, consists of the following items. Part Quantity...
The inventory of Sunland Company on December 31, 2020, consists
of the following items.
Part
Quantity
Cost per Unit
Net Realizable Value
110
560
$119.00
$125.00
111
1,060
75.00
65.00
112
550
100.00
95.00
113
220
212.50
225.00
120
440
256.00
260.00
121
a
1,700
20.00
1.00
122
290
300.00
294.00
a Part No. 121 is obsolete and has a realizable value of
$1.00 each as scrap.
(a) Determine the inventory as of December 31,
2020, by the LCNRV method,...
The inventory of Waterway Company on December 31, 2020, consists of the following items. Part Quantity...
The inventory of Waterway Company on December 31, 2020, consists
of the following items.
Part
Quantity
Cost per Unit
Net Realizable Value
110
540
$130.00
$137.00
111
930
82.20
71.00
112
470
109.60
104.00
113
180
232.90
246.60
120
420
281.00
285.00
121
a
1,700
22.00
1.00
122
270
328.80
322.00
a Part No. 121 is obsolete and has a realizable value of
$1.00 each as scrap.
(a) Determine the inventory as of December 31,
2020, by the LCNRV method,...
he inventory of Sandhill Company on December 31, 2020, consists of the following items. Part Quantity...
he inventory of Sandhill Company on December 31, 2020, consists
of the following items.
Part
Quantity
Cost per
unit
Net Realizable
Value
A419
4,600
$11
$19
A435
3,910
8
6
A545
9,292
7
11
A615
6,900
10
7
A721
10,120
9
10
A885
12,880
15
18
A999
a
8,464
6
1
a Part No. A999 is obsolete and has a realizable value
of $1 each as scrap.
(a) Determine the inventory as of December 31,
2020, by the LCNRV method,...
The inventory of ABC Company on December 31, 2018 consists of the following items: Part Quantity...
The inventory of ABC Company on December 31, 2018 consists of
the following items:
Part
Quantity
cost per unit
net realizable value
A
600
95
100
B
1000
60
52
C
500
80
76
D
200
170
180
E
400
205
208
F
300
240
235
(1) Determine the inventory as of December 31, 2018, by the
LCNRV method, applying this method to each item.
(2) Determine the inventory by the LCNRV method, applying the
method to the total of...
The inventory of Blue Company on December 31, 2017, consists of the following items. Part Quantity...
The inventory of Blue Company on December 31, 2017, consists of
the following items. Part Quantity Cost per Unit Net Realizable
Value 110 640 $126 $133 111 1,100 80 69 112 450 106 101 113 190 226
239 120 410 273 277 121 a 1,700 21 1 122 320 319 313 a Part No. 121
is obsolete and has a realizable value of $1 each as scrap. (a)
Determine the inventory as of December 31, 2017, by the LCNRV
method,...
Blossom Inc., a greeting card company, had the following statements prepared as of December 31, 2020....
Blossom Inc., a greeting card company, had the following
statements prepared as of December 31, 2020.
BLOSSOM INC.
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2020 AND 2019
12/31/20
12/31/19
Cash
$6,000
$6,900
Accounts receivable
61,800
50,900
Short-term debt investments (available-for-sale)
35,200
17,900
Inventory
40,300
60,600
Prepaid rent
5,100
3,900
Equipment
155,100
131,300
Accumulated depreciation—equipment
(35,200
)
(24,800
)
Copyrights
45,800
50,400
Total assets
$314,100
$297,100
Accounts payable
$45,600
$40,000
Income taxes payable
4,000
6,000
Salaries and wages payable
8,100...
The inventory account of Cullumber Company at December 31, 2020, included the following items: Inventory Amount...
The inventory account of Cullumber Company at December 31, 2020,
included the following items:
Inventory Amount
Merchandise out on
consignment at sales price
(including markup of 40% on selling price)
$61000
Goods purchased, in transit
(shipped f.o.b. shipping point)
49000
Goods held on consignment by
Cullumber
63000
Goods out on approval (sales
price $31400, cost $26600)
31400
Based on the above information, the inventory account at December
31, 2020, should be reduced by
$141200.
$104400.
$92200.
$92400.
Edwards and Everett, Inc. had the following items in its capital structure at December 31, 2020:...
Edwards and Everett, Inc. had the following items in its capital
structure at December 31, 2020:
Common stock options, issued in 2019, exercisable for 22,000
shares, beginning in 2022, at a “strike” price of $20 per share.
The cash that would be received from the option-holders from a
hypothetical exercise of the options at December 31, 2020 would be
sufficient for Edwards & Everett to acquire 13,400 shares of
its own common stock (as treasury stock).
Treasury stock, common, 20,000...
Brooks Company carries three inventory items. The following information pertains to the ending inventory: Item Quantity...
Brooks Company carries three inventory items. The following
information pertains to the ending inventory:
Item
Quantity
Unit
Cost
Unit
Market Value
A
195
$
10
$
9
F
255
12
11
K
173
5
8
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.
b. Prepare the necessary journal entry,
assuming the decline in value was immaterial. (If no entry
is required for a...
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