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Outdoor Company uses the perpetual inventory system and its inventory consists of four products as at March 31, 2022. Selected information is provided below. Required
Outdoor Company uses the perpetual inventory system and its inventory consists of four products as at March 31, 2022. Selected information is provided below.
Required
a) Calculate the inventory value that should be reported on March 31, 2022, using the LCNRV applied on an individual item basis.
Do not enter dollar signs or commas in the input boxes.
Product Number of Units Cost (per unit) NRV (per unit) LCNRV (per unit) 1 15 $99 $119 $Answer 2 50 $94 $63 $Answer 3 50 $70 $53 $Answer 4 40 $107 $167 $Answer Inventory Value Total $Answer $Answer
LCNRV Inventory Value =$Answer
b) Using the results from part a), prepare the journal entry to adjust inventory to LCNRV.
Date Account Title and Explanation Debit Credit 2022 Mar 31 AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldEquipmentInsurance ExpenseInterest ExpenseInterest PayableMerchandise InventoryPrepaid InsurancePrepaid RentRent ExpenseSales Revenue Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldEquipmentInsurance ExpenseInterest ExpenseInterest PayableMerchandise InventoryPrepaid InsurancePrepaid RentRent ExpenseSales Revenue Answer Adjust inventory to LCNRV
Outdoor Company uses the perpetual inventory system and its inventory consists of four products as at March 31, 2022. Selected information is provided below.
Required
a) Calculate the inventory value that should be reported on March 31, 2022, using the LCNRV applied on an individual item basis.
Do not enter dollar signs or commas in the input boxes.
| Product | Number of Units | Cost (per unit) | NRV (per unit) | LCNRV (per unit) |
| 1 | 15 | $99 | $119 | $Answer |
| 2 | 50 | $94 | $63 | $Answer |
| 3 | 50 | $70 | $53 | $Answer |
| 4 | 40 | $107 | $167 | $Answer |
| Inventory Value Total | $Answer | $Answer |
LCNRV Inventory Value =$Answer
b) Using the results from part a), prepare the journal entry to adjust inventory to LCNRV.
| Date | Account Title and Explanation | Debit | Credit |
| 2022 | |||
| Mar 31 | AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldEquipmentInsurance ExpenseInterest ExpenseInterest PayableMerchandise InventoryPrepaid InsurancePrepaid RentRent ExpenseSales Revenue | Answer | |
| AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldEquipmentInsurance ExpenseInterest ExpenseInterest PayableMerchandise InventoryPrepaid InsurancePrepaid RentRent ExpenseSales Revenue | Answer | ||
| Adjust inventory to LCNRV |
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