In: Accounting
Teal Mountain, 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 | 11,832 | $14.50 | $13.86 | $16.24 | $3.48 | $3.94 | ||||||||||
X512 | 5,742 | 8.12 | 8.70 | 10.32 | 0.29 | 2.09 | ||||||||||
X682 | 20,880 | 22.04 | 21.58 | 36.60 | 3.77 | 10.44 | ||||||||||
Z195 | 14,500 | 16.53 | 16.24 | 22.97 | 1.62 | 6.67 | ||||||||||
Z846 | 9,976 | 13.92 | 14.79 | 16.18 | 2.44 | 1.28 |
(a)
Partially correct answer iconYour answer is partially correct.
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 |
Attempts: 2 of 2 used
(b)
New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is partially correct.
Show the journal entries Teal Mountain, Inc. will need to make in order to write down the ending inventory from cost to market. Assume this is Teal Mountain’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.)
Step :1 : calculation of NRV
(a)
Calculate the lower-of-cost-or-market using the individual-item approach.
(b)
Show the journal entries Teal Mountain, Inc. will need to make in order to write down the ending inventory from cost to market. Assume this is Teal Mountain’s first year of operations
Working :
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