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3) The following information is taken from Bellows Corporation's inventory records Women's Apparel Men's Apparel Children's Apparel Selling price $ 173,000 $ 144,000 $ 126,000
3) The following information is taken from Bellows Corporation's inventory records | ||||||
Women's Apparel | Men's Apparel | Children's Apparel | ||||
Selling price | $ 173,000 | $ 144,000 | $ 126,000 | |||
Selling costs | 12,000 | 14,000 | 10,000 | |||
Cost | 112,000 | 136,000 | 94,000 | |||
Replacement cost | 121,000 | 132,000 | 113,000 | |||
Normal profit margin is 21% of the selling price. | ||||||
a) What is the correct inventory value for each product using the lower of cost or market. | ||||||
b) Journalize the required adjusting entry. | ||||||
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