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Instructions Chart of Accounts General Journal Schedule to Calculate the Inventory Instructions Peter Park Company began operations in early 2019 At December 31, 2019, the
Instructions Chart of Accounts General Journal Schedule to Calculate the Inventory Instructions Peter Park Company began operations in early 2019 At December 31, 2019, the company's ending inventory cost was 512,950. The market value of the inventory at this date was 511,800. Peter Park values its inventory at lower of cost or market applied on an individual item basis and uses a perpetual inventory system Below is information relating to Peter's inventory at December 31, 2020 No. of Replacement Cost Estimated Selling Price Item Estimated Costs of Disposal Units Unit Cost Normal Profit Margin $2.00 1 200 $5.00 $4.00 $750 $1.00 2 400 9.00 8.00 10.00 1.50 2.00 3 350 6.00 7.00 8.00 2.50 1.00 4 450 7.50 8.80 10.00 2.00 1.50 5 500 3.00 2.50 500 0.50 1.50 Required: a Assuming that the company uses the allowance method, prepare the required entry at December 31 2019, to record the inventory at lower of cost or market b. Prepare a schedule to calculate the inventory's value as of December 31, 2020, using the lower of cost or market method applied using the LIFO method The schedule should contain the following column headings Item Upper Constraint Lower Constraint Applicable Unit Inventory Value Number of Onts and Total Inventory Value Required: a. Assuming that the company uses the allowance method prepare the required entry at December 31, 2019, to record the inventory at lower of cost or market b. Prepare a schedule to calculate the inventory's value as of December 31, 2020, using the lower of cost or market method applied using the LIFO method. The schedule should contain the following column headings: Item, Upper Constraint, Lower Constraint Applicable Unit inventory Value, Number of Units, and Total inventory Value c. Prepare the required entry at December 31, 2020, to record the inventory at lower of cost or market Assume the allowance method is used Instructions Schedule to Calculate the Inventory Prepare a schedule to calculate the inventorys value as of December 31 2020, using the lower of cost or market method appled using the UFO method Item Upper Constraint Lower constraint Applicable Unit Inventory Value No. of Units Total Inventor 1 S 15 S 2 3 4 5 9 Cost 12/31/20 c. Prepare the required entry at December 31, 2020 to record the riventory we of cost of market Assume the alance method is used
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