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Information pertaining to its year-end inventory is as follows: Inventory, by Product CategoryQuantityPer Unit CostNet Realizable ValueTools:Hammers100$ 4.20$ 4.70Saws1209.208.20Screwdrivers2201.201.80Paint products:1-gallon cans4205.204.20Paint brushes1003.203.70 Required: Determine the
Information pertaining to its year-end inventory is as follows:
Inventory, by Product CategoryQuantityPer Unit CostNet Realizable ValueTools:Hammers100$ 4.20$ 4.70Saws1209.208.20Screwdrivers2201.201.80Paint products:1-gallon cans4205.204.20Paint brushes1003.203.70Required:
- Determine the carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule is applied to (a) individual products, (b) product categories, and (c) total inventory.
- Assuming inventory write-downs are common for Ace, record any necessary year-end adjusting entry for each of the LCNRV applications in requirement 1.
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Auditing And Assurance Services
Authors: Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Jay Thibodeau
8th International Edition
1260570517, 978-1260570519
