Question
Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2021 year-end inventory is as follows: Inventory, by Product Category
Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2021 year-end inventory is as follows:
Inventory, by Product Category | Quantity | Per Unit Cost | Net Realizable Value | ||||||||
Tools: | |||||||||||
Hammers | 110 | $ | 6.00 | $ | 6.50 | ||||||
Saws | 300 | 11.00 | 10.00 | ||||||||
Screwdrivers | 400 | 3.00 | 3.60 | ||||||||
Paint products: | |||||||||||
1-gallon cans | 600 | 7.00 | 6.00 | ||||||||
Paint brushes | 110 | 5.00 | 5.50 | ||||||||
Required: 1. Determine the carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule is applied to (a) individual products, (b) product categories, and (c) total inventory. 2. Assuming inventory write-downs are common for Almaden, record any necessary year-end adjustment amount for each of the LCNRV applications in requirement 1.
Determine the carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule is applied to (a) individual products, (b) product categories, and (c) total inventory.
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Assuming inventory write-downs are common for Almaden, record any necessary year-end adjustment amount for each of the LCNRV applications in requirement 1. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Journal entry worksheet
- Record necessary year-end adjustment for individual products.
Note: Enter debits before credits.
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explanation: ?
- Record necessary year-end adjustment for product categories.
Note: Enter debits before credits.
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explanation?
- Record necessary year-end adjustment for total inventory.
Note: Enter debits before credits.
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explanation??
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