Forest Company has five products in its inventory. Information about ending Inventory follows. Product A Quantity...

Transcribed Image Text:

Forest Company has five products in its inventory. Information about ending Inventory follows. Product A Quantity 1,000 Unit Cost Unit Replacement Cost $ 28 $ 30 BCDE 900 33 29 500 21 20 600 25 700 32 152 22 30 Unit Selling Price $ 34 36 26 24 31 The cost to sell for each product consists of a 10 percent sales commission. The normal profit for each product is 35 percent of the selling price. Required: 1. Determine the carrying value of ending inventory, assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Determine the carrying value of Inventory, assuming the LCM rule is applied to the entire inventory. 3. Assuming Inventory write-downs are common for Forest, record any necessary year-end adjusting entry based on the amount calculated in requirement 2. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the carrying value of ending inventory, assuming the lower of cost or market (LCM) rule is applied to individual products. Note: Do not round intermediate calculations. Product (units) RC A (1,000) B (900) C (500) D (600) E (700) NRV NRV minus NP Market Cost Inventory value Total Forest Company has five products in its inventory. Information about ending Inventory follows. Product A Quantity 1,000 Unit Cost Unit Replacement Cost $ 28 $ 30 BCDE 900 33 29 500 21 20 600 25 700 32 152 22 30 Unit Selling Price $ 34 36 26 24 31 The cost to sell for each product consists of a 10 percent sales commission. The normal profit for each product is 35 percent of the selling price. Required: 1. Determine the carrying value of ending inventory, assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Determine the carrying value of Inventory, assuming the LCM rule is applied to the entire inventory. 3. Assuming Inventory write-downs are common for Forest, record any necessary year-end adjusting entry based on the amount calculated in requirement 2. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the carrying value of ending inventory, assuming the lower of cost or market (LCM) rule is applied to individual products. Note: Do not round intermediate calculations. Product (units) RC A (1,000) B (900) C (500) D (600) E (700) NRV NRV minus NP Market Cost Inventory value Total