Question

The December 31, 2019 inventory of Jenner Corp. consisted of three products, for which certain information...

The December 31, 2019 inventory of Jenner Corp. consisted of three products, for which certain information is provided below. (8 points)

Product

Original Cost

Replacement cost

Estimated disposal cost

Expected selling price

Normal Profit on sales

A

$24

$22

$6.5

$40

20%

B

$42

$40

$10

$48

25%

C

$120

$115

$25

$190

30%

     

Instructions

Using the lower-of-cost-or-market approach applied on an individual-item basis, compute the inventory valuation that should be reported for each product on December 31, 2019.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The December 31, 2017 inventory of Gwynn Company consisted of four products, for which certain information...
The December 31, 2017 inventory of Gwynn Company consisted of four products, for which certain information is provided below.                                                                                                                             Replacement           Estimated            Expected         Normal Profit Product        Original Cost                Cost                  Disposal Cost      Selling Price         on Sales       A                   $24.00                   $22.00                     $6.50                   $40.00                 20%     B                   $42.00                   $40.00                   $10.00                   $48.00                 25%     C                 $120.00                 $115.00                   $25.00                 $190.00                 30%     D                   $19.00                   $15.80                     $4.00                   $26.00                 10% Instructions:Using the lower-of-cost-or-net realizable value approach applied on an individual-item basis, compute the inventory valuation that should be reported for each product on December 31, 2017. Product COST NETREALIZABLE VALUE > LCNRV A B C D
The December 31, 2020 inventory of Sandhill Company consisted of four products, for which certain information...
The December 31, 2020 inventory of Sandhill Company consisted of four products, for which certain information is provided below. Product Original Cost Replacement Cost Estimated Disposal Cost Expected Selling Price Normal Profit on Sales A $30.00 $28.00 $5.00 $50.00 30.00% B $45.00 $43.00 $9.00 $49.00 25.00% C $148.00 $143.00 $28.00 $190.00 20.00% D $17.00 $14.50 $6.00 $28.00 20.00% Using the lower-of-cost-or-market approach applied on an individual-item basis, compute the inventory valuation that should be reported for each product on December...
Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows....
Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Product Quantity Unit Cost Unit Replacement Cost Unit Selling Price A 700 $ 21 $ 23 $ 27 B 1,000 26 22 29 C 900 14 13 19 D 600 18 15 17 E 500 25 23 24 The cost to sell for each product consists of a 20 percent sales commission. The normal profit for each product is 40 percent of the selling...
Forest Company has five products in its inventory. Information about the December 31, 2021, inventory follows....
Forest Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Product Quantity Unit Cost Unit Replacement Cost Unit Selling Price A 1,000 $10 $12 $16 B 800 $15 $11 $18 C 600 $3 $2 $8 D 200 $7 $4 $6 E 600 $14 $12 $13 The cost to sell for each product consists of a 15 percent sales commission. The normal profit for each product is 40 percent of the selling price. The carrying...
The inventory of Royal Decking consisted of five products. Information about the December 31, 2018, inventory...
The inventory of Royal Decking consisted of five products. Information about the December 31, 2018, inventory is as follows: Per Unit Product Cost Replacement Cost Selling Price A $ 56 $ 51 $ 76 B 96 86 116 C 56 71 96 D 116 86 146 E 36 44 46 Selling costs consist of a sales commission equal to 10% of selling price and shipping costs equal to 5% of cost. The normal gross profit percentage is 35% of selling...
Company has the following items as inventory as of December 31, 2016. What is the value...
Company has the following items as inventory as of December 31, 2016. What is the value of inventory by applying Lower Cost of Market? (LIFO) ITEM COST CURRENT REPLACEMENT COST ESTIMATED SELLING PRICE COMPLETION & DISPOSAL COST 1 $65 $68 $80 $3 2 $80 $72 $102 $8 3 $90 $105 $112 $10 4 $38 $42 $40 $4 5 $20 $21 $30 $2 6 $55 $45 $67 $2 For all inventory items, Normal Profit Margin is 30% of selling price. Product...
Tatum Company has four products in its inventory. Information about the December 31, 2018, inventory is...
Tatum Company has four products in its inventory. Information about the December 31, 2018, inventory is as follows: Product Total Cost Total Replacement Cost Total Net Realizable Value 101 $ 146,000 $ 133,400 $ 121,200 102 108,600 102,500 132,700 103 72,300 48,200 60,800 104 36,700 34,300 61,500 The normal gross profit percentage is 35% of total cost. Required: 1. Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or market (LCM) rule is applied...
The inventory of Royal Decking consisted of five products. Information about the December 31, 2018, inventory...
The inventory of Royal Decking consisted of five products. Information about the December 31, 2018, inventory is as follows: Per Unit Product Cost Selling Price A $ 140 $ 160 B 180 200 C 140 180 D 100 150 E 60 80 Costs to sell consist of a sales commission equal to 10% of selling price and shipping costs equal to 5% of cost. Required: What unit value should Royal Decking use for each of its products when applying the...
Information related to trucks owned by Macy Corp. at December 31, 2019, is presented below. Cost...
Information related to trucks owned by Macy Corp. at December 31, 2019, is presented below. Cost $7,000,000 Accumulated depreciation to date 1,500,000 Value-in-use 5,000,000 Fair value less cost of disposal 4,400,000 Required: B1. Determine any impairment loss for the trucks on December 31, 2019. B2. Prepare the journal entry to record the impairment loss.
Tatum Company has four products in its inventory. Information about the December 31, 2018, inventory is...
Tatum Company has four products in its inventory. Information about the December 31, 2018, inventory is as follows: Product Total Cost Total Net Realizable Value 101 $ 150,000 $ 115,000 102 105,000 125,000 103 75,000 65,000 104 45,000 65,000 Required: 1. Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or net realizable value (LCNRV) rule is applied to individual products. 2. Assuming that inventory write-downs are common for Tatum Company, record any necessary...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT