At 12/31/20, the end of Carla Vista Company's first year of business, inventory was $6,100 and $4,750 at cost and at market, respectively. Following is data relative to the 12/31/21 inventory of Jenner: Original Cost Per Unit Replacement Cost Item $0.70 A $0.30 0.55 0.50 C 0.75 0.80 0.60 0.50 D E 0.70 0.65 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 1,300 units of each item in the 12/31/21 inventory Prepare the entry at 12/31/20 necessary to implement the lower-of-cost-or-market procedure assuming Carla Vista uses a contra account for its balance sheet. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Date Credit 12/31/20 LINK TO TEXT Complete the last three columns in the 12/31/21 schedule below based upon the lower-of-cost-or-market rules Net Realizable Value Original Cost Per Unit Net Realizable Value Less Normal Profit Appropriate Inventory Value Replacement Cost Item $0.70 $0.30 A $ 0.55 0.50 C 0.75 0.80 0.60 0.50 D E 0.70 0.65 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.) Account Titles and Explanation Debit Credit Date 12/31/21 (To record cost of goods sold) 12/31/21 (To record profit/ loss) LINK TO TEXT How are inventory losses disclosed on the income statement? Jor they can be shown as part of Inventory losses can be disclosed separately below Click if you would like to Show Work for this question: Open Show Work At 12/31/20, the end of Carla Vista Company's first year of business, inventory was $6,100 and $4,750 at cost and at market, respectively. Following is data relative to the 12/31/21 inventory of Jenner: Original Cost Per Unit Replacement Cost Item $0.70 A $0.30 0.55 0.50 C 0.75 0.80 0.60 0.50 D E 0.70 0.65 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 1,300 units of each item in the 12/31/21 inventory Prepare the entry at 12/31/20 necessary to implement the lower-of-cost-or-market procedure assuming Carla Vista uses a contra account for its balance sheet. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Date Credit 12/31/20 LINK TO TEXT Complete the last three columns in the 12/31/21 schedule below based upon the lower-of-cost-or-market rules Net Realizable Value Original Cost Per Unit Net Realizable Value Less Normal Profit Appropriate Inventory Value Replacement Cost Item $0.70 $0.30 A $ 0.55 0.50 C 0.75 0.80 0.60 0.50 D E 0.70 0.65 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.) Account Titles and Explanation Debit Credit Date 12/31/21 (To record cost of goods sold) 12/31/21 (To record profit/ loss) LINK TO TEXT How are inventory losses disclosed on the income statement? Jor they can be shown as part of Inventory losses can be disclosed separately below Click if you would like to Show Work for this question: Open Show Work
