CALCULATOR PRINTER VERSION BACK NEXT Question 10 At 12/31/20, the end of Oriole Company's first year of business, inventory was $6,800 and $5,200 at cost and at market, respectively. Following is data relative to the 12/31/21 Inventory of Jenner: Item Original Cost Replacement Per Unit Cost $0.75 $0.40 0.45 0.40 0.60 0.65 0.80 0.70 0.90 0.85 Selling price is $1.00/unit for all items. Disposal costs amount to 10% of selling price and a "normal" profit is 20% of selling price. There are 1,400 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 Oriole uses a contra account for its balance sheet. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation 12/31/20 Loss Due to Decline of Inventory to Market D OXALIA CALCULATOR PRINTER VERSION BACK NEX Prepare the entry at 12/31/20 necessary to implement the lower-of-cost-or-market procedure assuming Oriole uses a contra account for its balance sheet. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 12/31/20 Loss Due to Decline of Inventory to Market D Allowance to Reduce Inventory to Market Complete the 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 Item udy $0.75 $0.40 0.45 0.40 0.60 0.65 0.80 0.70 CALCULATOR PRINTER VERSION BACK NE Complete the last three columns in the 12/31/21 schedule below based upon the lower-of-cost-or-market rules. Item Original Cost Per Unit Replacement Cost Net Realizable Value Net Realizable Value Less Normal Profit Appropriate Inventory Value $0.75 $0.40 0.45 0.40 0.60 0.65 0.80 0.70 tudy 0.90 0.85 Prepare the entries necessary at 12/31/21 based on the data above. (Credit account titles are automatically indented when the CES CALCULATOR PRINTER VERSION BACK NE 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 12/31/21 Debit Credit (To record cost of goods sold) 12/31/21 Study (To record profit/loss) How are inventory losses disclosed on the income statement? Inventory losses can be disclosed separately below 16100Od Ana B or they can be shown as part of
