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Cost Per Unit Replacement Cost Item A A $0.65 $0.30 0.35 B 0.40 0.60 0.65 D 0.80 0.70 E 0.80 0.75 Selling price is $1.00/unit

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Cost Per Unit Replacement Cost Item A A $0.65 $0.30 0.35 B 0.40 0.60 0.65 D 0.80 0.70 E 0.80 0.75 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 1,500 units of each item in the 12/31/21 inventory 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 A $0.65 $0.30 B 0.40 0.35 0.60 0.65 D D 0.80 0.70 E E 0.80 0.75 $ 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.) Debit Credit Date Account Titles and Explanation 12/31/21 (To record cost of goods sold) 12/31/21 (To record profit/ loss) How are inventory losses disclosed on the income statement? entory losses can be disclosed separately below or they can be shown as part of Cost Per Unit Replacement Cost Item A A $0.65 $0.30 0.35 B 0.40 0.60 0.65 D 0.80 0.70 E 0.80 0.75 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 1,500 units of each item in the 12/31/21 inventory 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 A $0.65 $0.30 B 0.40 0.35 0.60 0.65 D D 0.80 0.70 E E 0.80 0.75 $ 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.) Debit Credit Date Account Titles and Explanation 12/31/21 (To record cost of goods sold) 12/31/21 (To record profit/ loss) How are inventory losses disclosed on the income statement? entory losses can be disclosed separately below or they can be shown as part of

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