The following information on cost and net realizable value of Martinez Ltd's various inventory categories was gathered at December31, 2021:Inventory CategoriesDesktopsTablets and readersLaptopsAccessories and parts(a)Inventory CategoriesDesktopsTablets and readersYour answer is correct.LaptopsCostAccessories and partsTotal valuation$348,900 $328,300167,100222,30097,500Calculate the lower of cost and net realizable value for each inventory category within Martinez's inventory.NRV$$222,500286,40094.700LCNRV32830016710022230094700812400 Your answer is partially correct.Prepare the entry needed to adjust Martinez's inventory value to the lower of cost or net realizable value at December 31, 2021.(List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indentmanually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)Account Titles and ExplanationCost of Goods SoldInventoryDebit142900Credit142900

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Description: The following information on cost and net realizable value of Martinez Ltd's various inventory categories was gathered at December31, 2021:Inventory CategoriesDesktopsTablets and readersLaptopsAccessories and parts(a)Inventory CategoriesDesktopsTabl

Journal entry is the primary step to record the transaction in the books of accounts. The increase…

Business

Accounting

The following information on cost and net realizable value of Martinez Ltd's various inventory categories was gathered at December 31, 2021: Inventory Categories Desktops Tablets and readers Laptops Accessories and parts Cost $348,900 $328,300 167,100 222,300 NRV 97,500 222,500 286,400 94,700

The following information on cost and net realizable value of Martinez Ltd's various inventory categories was gathered at December 31, 2021: Inventory Categories Desktops Tablets and readers Laptops Accessories and parts Cost $348,900 $328,300 167,100 222,300 NRV 97,500 222,500 286,400 94,700

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 10PA: Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company,...

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Use the weighted-average (AVG) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
Calculate the cost of goods sold dollar value for A74 Company for the sale on March 11, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG).
Calculate the cost of goods sold dollar value for B74 Company for the sale on November 20, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG).
Compare the calculations for gross margin for A76 Company, based on the results of the perpetual inventory calculations using FIFO, LIFO, and AVG.
Use the last-in, first-out (LIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
Crane Ltd. had the following items in inventory as at December 31, 2024: Item No. Quantity Unit Cost NRV དྷྭ སྒྲ སཱུ སྦ 340 $4.00 $4.30 370 3.00 2.90 380 8.00 9.00 400 7.00 6.80 Assume that Crane uses a perpetual inventory system. Fill in the table below for the lower of cost and net realizable value per unit, the inventory dollar amount at the lower of cost and net realizable value, and the dollar amount of the inventory at cost. ntity Unit Cost NRV Unit LC & NRV 340 $4.00 $4.30 S 370 3.00 2.90 Dollar LC & NRV 4.00 $ 2.90 1360 1073 380 8.00 9.00 8.00 3040 400 7.00 6.80 6.80 2720 Dollar Cost 1360 1110 3040 2800 $ 8193 $ 8310 Prepare any necessary adjusting entry at December 31, 2024. (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 O for the amounts. List debit entry before credit entry) Account Titles Debit Credit
The following information on cost and net realizable value of Bramble Ltd's various inventory categories was gathered at December 31, 2021: Inventory Categories Cost NRV Desktops $348,700 $327,600 Tablets and readers 169,300 225,100 Laptops 219,300 283,700 Tablets and readers 97,000 93,600 (a) Calculate the lower of cost and net realizable value for each inventory category within Bramble's inventory. Inventory Categories LCNRV Desktops Tablets and readers Laptops Accessories and parts Total valuation $
7. Cost Flow (Single Transaction). VRL Enterprises uses the moving average method to determine the cost of its inventory. During August 2020, VRL recorded the following information pertaining to its inventory: Units Unit cost Total cost Balance, August 1 20,000 P10 P200,000 Sale, August 15 17,500 Purchase, August 22 10,000 P16 P160,000 What amount of inventory should VRL report in its August 31, 2020 statement of financial position?
Suppose that Ivanhoe Depot developed the following information about its inventories in applying the lower-of-cost-or-net- realizable-value (LCNRV) basis in valuing inventories: Product A B C Cost $119000 83000 166000 NRV $125000 79000 168000 After Ivanhoe Depot applies the LCNRV rule, the value of the inventory reported on the balance sheet will be $368000. O $364000. O $372000. O $376000.
Desktops 327600 Tablets and readers 169300 Laptops 219300 Accessories and parts 93600 Total valuation $ 809800 eTextbook and Media List of Accounts Attempts: 1 of 3 used (b) Prepare the entry needed to adjust Bramble's inventory value to the lower of cost or net realizable value at December 31, 2021. (List all debit entries before credit entries. 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 O for the amounts.) Account Titles and Explanation Debit Credit
Splish Brothers, 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 UnitCost ReplacementCost/Unit Estimated SellingPrice/Unit Completion & DisposalCost/Unit Normal ProfitMargin/Unit X490 8,976 $11.00 $10.52 $12.32 $2.64 $2.99 X512 4,356 6.16 6.60 7.83 0.22 1.58 X682 15,840 16.72 16.37 27.76 2.86 7.92 Z195 11,000 12.54 12.32 17.42 1.23 5.06 Z846 7,568 10.56 11.22 12.28 1.85 0.97 (a) Correct answer icon Your answer is correct. Calculate the lower-of-cost-or-market using the individual-item approach. (Round answers to 2 decimal places, e.g. 52.75.) (b) Partially correct answer icon Your answer is partially correct. Show the journal entries Splish Brothers, Inc. will…
Novak Company uses the LCNRV method, on an individual-itèm basis, in pricing its inventory items. The inventory at December 31, 2025, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Item D E F G H I Estimated selling price $151 $139 $120 $113 $139 $113 Cost 95 101 101 101 63 45 Cost to complete 38 38 32 44 38 38 Selling costs 13 23 13 25 13 25 Using the LCNRV rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2025, for each of the inventory items above. Item D $ 100 Item E $ 88 Item F $ 75 Item G $ 44