Item Per Unit Cost At 13/01/20, the end of Ivanhoe company's first year of business, inventory was $5,000 and 54,550 at cost and at market, respectively. Following is data relative to the 12/31/21 inventory of Senner: Original Cost Replacement 30.55 50:35 0.40 0.35 0.00 0.75 0.10 Selling price is $100/unit for all items. Choral costs amount to 10 of selling price and a normal profile on selling price. There are 1.400 unit of each cort in the 12/11/21 Inventory D 0.85 35 Prepare the entry at 12/21/20 necessary to implement the lower of content procedure in Ivanhoe ver contra account for its balance. (Credit accoonetes matematically indent when the amount is entered. Do not indent many) Date Account Tales and Explanation De Grott Complete the last three columns in the 12/31/21 schedule below based upon the lower-of-cost-or-market rules. Original Cost Replacement Net Realizable Net Realizable Value Item Per Unit Cost Value Less Normal Profit $0.55 $0.35 Appropriate Inventory Value A $ B 0.40 0.35 0.85 0.90 D 0.85 0.75 E 0.85 0.80 Prepare the entries necessary at 12/31/21 based on the data above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually Date Account Titles and Explanation 1921 Debit Credit (To recurd cost of goods sold 12/31/21 (to record profit How are inventory losses discoted on the income statement Inventory se can be disclosed separately below or they can be shown as part of At 12/31/20, the end of Ivanhoe Company's first year of business, inventory was $6,800 and $4,550 at cost and at market, respectively. Following is data relative to the 12/31/21 inventory of Jenner: Item B D E Original Cost Per Unit $0.55 0.40 0.85 0.85 0.85 Replacement Cost $0.35 0.35 0.90 0.75 0.80 er Selling price is $1.00/unit for all items. Disposal costs amount to 10% of selling price and a "normal" profit is 30% of selling price. There are 1,400 units of each item in the 12/31/21 inventory. cd 20 . Prepare the entry at 12/31/20 necessary to implement the lower-of-cost-or-market procedure assuming Ivanhoe uses a contra account for its balance sheet. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) d! Date Credit Account Titles and Explanation Debit 12/31/20 Orl Pe Complete the last three columns in the 12/31/21 schedule below based upon the lower-of-cost-or-market rules. Original Cost Replacement Net Realizable Net Realizable Value Appropriate Item Per Unit Cost Value Less Normal Profit Valu A $0.55 $0.35 100 un ce is B 0.40 0.35 0.85 0.90 alance D 0.85 0.75 ne er mati E 0.85 0.80 Aced $ $ Prepare the entries necessary at 12/31/21 based on the data above. (Credit account titles are automatically danad when the mount fronterad nn nnt indent manually e last three columns in the 12/31/21 schedule below based upon the lower-of-cost-or-market rules. Original Cost Per Unit Replacement Cost Net Realizable Value Net Realizable Value Less Normal Profit $ Appropriate Inventory Value $0.55 $0.35 0.40 0.35 0.85 0.90 0.85 0.75 0.85 0.80 $ entries necessary at 12/31/21 based on the data above. (Credit account titles are automatically than the mount contrado not indont man aller Prepare the entries necessary at 12/31/21 based on the data above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Or pel Debit Credit Date Account Titles and Explanation 12/31/21 (To record cost of goods sold) 12/31/21 ce is (To record profit/ loss) How are inventory losses disclosed on the income statement? eer nati ACCO Inventory losses can be disclosed separately below or they can be shown as part of Question Attempts: 0 of 1 used
