N B M E F G H D K Assume the accounting department at Company XYZ prepared the following schedule comparing the total cost and NRV of its December 31, 2020, ending inventory: 2 3 4 5 6 TTT Total Total Cost NRV Product A 39,000 36,000 Product B 46,000 36,000 Producto 19,000 19,000 Product D 27,000 31,000 Product E 4,000 6,000 Totals 135,000 128,000 * Assume all products are similar 7 8 9 10 11 12. Calculate the merchandise inventory value that should appear on the Dec. 31, 2020 balance Sheet. 13 Apply LCNRV to each product and to inventory as a group by completing the schedule provided. 14 15 LCNRV applied to: Total Total 16 Cost NRV Products Group 17 Product A 18 Product B 19 Product C 20 Product D 21 Product E 22 Totals 23 24 Based on your claculations in part (a), prepare the appropriate adjusting entry at year end, assuming LCNRV is applied to inventory as a group. 25 26 27 O B D E F G H K M N 28 29 30 Assume that company ABC, a competitor of XYZ, had 430,000 of sales during each of three consecutive years, and it purchased merchandise 31 costing 305,000 during each of the years. It also maintained a 107,000 inventory from the beginning to the end of the three year period. 32 However, 16,000 of merchandise inventory purchased FOB shippiing point on December 31, 2020 was accidentially excluded from the Dec. 31 inventory. 33 This error casued the company's ending 2020 inventory to appear on the statements at 91,000 rather than at the correct 34 35 Calculate the actual amount of the company's gross profit in each of the years. 36 107,000 37 38 39 Prepare a comparative income statement to show the effect of this error on the company's cost of goods sold and gross profit in 2020, 2021 and 2022. 40 41 42 43 44 45 For years ended December 21, 2020, 2021 and 2022 Income Statement information should have been reported as: 46 Income Statement information actaully reported for years ended December 31 2020 2021 2022 47 48 49 50 51 52 53 54 55 56