Problem 9 3 Lower of cost or market LO9 1 Forester Company has five products in its inventory Information about the December 31, 2018, inventory follows Product Quantity Unit Cost Unit Replacement Cost Unit Selling Price A 900 $ 19 $ 21 $ 25 B 800 24 20 27 C 1,000 12 11 17 D 500 16 13 15 E 800 23 21 22 The cost to sell for each product consists of a 15 percent sales commission The normal profit percentage for each product is 25 percent of the selling price Required 1 Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or market (LCM) rule is applied to individual products 2a Determine the carrying value of inventory at December 31, 2018, assuming the LCM rule is applied to the entire inventory 2b Assuming inventory write downs are usual business practice for Forester, record any necessary year end adjusting entry Req 1 Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or market (LCM) rule is applied to individual products (Do not round intermediate calculations ) Product (units) RC NRV NRV NP Market Cost Inventory Value A (900) B (800) C (1000) D (500) E (800) Total $0 $0 $0 Problem 9 3 Lower of cost or market (LO9 11 Forester Company has five products in its inventory Information about the December 31, 2018, inventory follows Unit Unit Unit Cost $ 19 24 12 16 23 Replacement Selling Product Quantity 900 800 1,000 500 800 Cost $21 20 Price $25 27 17 15 13 21 The cost to sell for each product consists of a 15 percent sales commission The normal profit percentage for each product is 25 percent of the selling price Required 1 Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or market (LCM) rule is applied to individual products 2a Determine the carrying value of inventory at December 31, 2018, assuming the LCM rule is applied to the entire inventory 2b ASsuming inventory write downs are usual business practice for Forester, record any necessary year end adjusting entry Complete this question by entering your answers in the tabs below Req 1 Req 2A Req 2B

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Problem 9-3 Lower of cost or market [LO9-1] Forester Company has five products in its inventory. Information about the December 31, 2018, inventory follows. Product

Problem 9-3 Lower of cost or market [LO9-1]

Forester Company has five products in its inventory. Information about the December 31, 2018, inventory follows.

Product	Quantity	Unit Cost		Unit Replacement Cost		Unit Selling Price
A	900	$	19	$	21	$	25
B	800		24		20		27
C	1,000		12		11		17
D	500		16		13		15
E	800		23		21		22

The cost to sell for each product consists of a 15 percent sales commission. The normal profit percentage for each product is 25 percent of the selling price. Required: 1. Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or market (LCM) rule is applied to individual products. 2a. Determine the carrying value of inventory at December 31, 2018, assuming the LCM rule is applied to the entire inventory. 2b. Assuming inventory write-downs are usual business practice for Forester, record any necessary year-end adjusting entry.

Req 1

Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or market (LCM) rule is applied to individual products. (Do not round intermediate calculations.)

Product (units)	RC	NRV	NRV-NP	Market	Cost	Inventory Value
A (900)
B (800)
C (1000)
D (500)
E (800)
Total				$0	$0	$0

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Problem 9-3 Lower of cost or market (LO9-11 Forester Company has five products in its inventory. Information about the December 31, 2018, inventory follows Unit Unit Unit Cost $ 19 24 12 16 23 Replacement Selling Product Quantity 900 800 1,000 500 800 Cost $21 20 Price $25 27 17 15 13 21 The cost to sell for each product consists of a 15 percent sales commission. The normal profit percentage for each product is 25 percent of the selling price Required 1. Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or market (LCM) rule is applied to individual products 2a. Determine the carrying value of inventory at December 31, 2018, assuming the LCM rule is applied to the entire inventory 2b. ASsuming inventory write-downs are usual business practice for Forester, record any necessary year-end adjusting entry Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B