Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Unit Selling Price $23 Product A B C D E Unit Replacement Cost $19 18 9 11 19 Unit Cost $ 17 22 10 14 21 Quantity 1,000 700 1,000 900 600 25 15 13 20 The cost to sell for each product consists of a 15 percent sales commission. The normal profit for each product is 40 percent of the selling price. Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Determine the carrying value of inventory at December 31, 2021, assuming the LCM rule is applied to the entire inventory. 3. Assuming inventory write-downs are common for Forester, 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 inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products. (Do not round intermediate calculations.) RC NRV NRV-NP Market Cost Inventory carrying value $ Product (units) A(1000) B (700) C (1000) D (900) E (600) 19,000 12,600 9,000 9,900 11,400 Total $ 0 $ 0 $ 0 Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Product A B C D E Quantity 1,000 700 1,000 900 600 Unit Cost $ 17 22 19 14 21 Unit Replacement Cost $19 18 9 11 19 Unit Selling Price $23 25 15 13 20 The cost to sell for each product consists of a 15 percent sales commission. The normal profit for each product is 40 percent of the selling price. Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Determine the carrying value of inventory at December 31, 2021, assuming the LCM rule is applied to the entire inventory. 3. Assuming inventory write-downs are common for Forester, 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 inventory at December 31, 2021, assuming the LCM rule is applied to the entire inventory. (Do not round intermediate calculations.) Inventory carrying value Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assuming inventory write-downs are common for Forester, record any necessary year-end adjusting entry based on the amount calculated in requirement 2. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet
