Question 20 At 13/11/20, the end of Sunland Company's first year of business, Inventory was 16,500 and 1.800 at cost and at market, respectively, Following is data relative to the 12/31/21 inventory of Jenner Original Cost Replacement Item Per Unit Cost A 50.65 50.30 B 0.40 0.35 0.60 0.65 D 0.80 0.70 E 0.00 0.75 Selling price is $1.00/unit for all items Disposal costs amount to 10% of selling price and a normal profit is 20% of selling price. There are 1,500 units of each item in the 12/31/21 inventory Prepare the entry at 12/31/20 necessary to implement the lower-of-cost-or-market procedure assuming Sunland uses a contra account for its balance sheet. (Credit account titles automatically indented when the amount is entered. Do not indent manually.) Date Account Tities and Explanation 12/31/20 Debit Credit Complete the last three columns in the 12/31/21 schedule below based upon the lower-of-cost-or-market rules Replacement Net Realizabal Nat. Realizable Original Post Aintenantan Complete the last three columns in the 12/31/21 schedule below based upon the lower-of-cost or marketu Original Cost Replacement Net Realizable Net Realirable Value Item Per Unit Cost Value Less Normal profit 30.65 50.30 Appropriate Inventory Value 5 0.40 0.35 C 0460 0.65 D 0.00 0.70 E 0.00 0.75 Prepare the entries necessary at 12/31/21 based on the date above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Tities and Explanation Debit Credit 12/01/21 To record cost of goods sold) 12/31/23 0.00 0.70 0.00 Prepare the entries necessary 12/31/21 based on the data stove (Cred countries are automatically indented when the amount is entered. Do norindent manually) Date Account Titles and tuplanation Debit Credit 12/31/21 (Toron cost of goods To record proto How are inventory les disclosed on the income statement or they can be shown as part of Inventory losses can be closed separately below 0.80 0.70 0.80 0.75 Prepare the entries necessary at 12/31/21 based on the data above (Credit accountitles are automatically indented when the amount is entered, Danoindent manually) Date Account Titles and Explanation Debit Credit 12/1221 To record cost of goods sold) 12/01/2 (To recorriol gross profit in operating expenses gross profit in administration penses How are inventory losses disclosed on the income gross profit in selling expenses Inventory losses can be disclosed separately below o they can be shown as part of 0.80 0.70 0.30 0.75 $ Prepare the entries necessary at 12/31/21 based on the data above (Credit account titles are automatically indented when the amount is entered De not indent manually.) Date Account Titles and Explanation Debit Credit 12/31/21 [To record cost of goods sold) 12/31/21 (To record profit loss) cost of goods sold cost of goods manufactured How are inventory losses disclosed on the income statement? cost of goods available for sale Inventory losses can be disclosed separately below or they can be shown as part of 0.00 0.70 E 0.00 0.75 Prepare the entries necessary at 12/31/21 based on the data above. (Credit account titles are automatically indented when the amount is entered. Do not Date Account Titles and Explanation Debit Credit 12/31/21 12/31/21 Allowance to Reduce Inventory to Market Loss Due to Decline of Inventory to Market Cost of Goods Sold Profit Due to Market Decline of Inventory Recovery Due to Market Incline of Inventory How are Inventory losses can be disclosed separately below or they can be shown as part of At 12/31/20, the end of Sunland Company's first year of business, inventory was $6,500 and $4,500 at cost and at market, respectively. Following is data relative to the 12/31/21 Inventory of Jenner Item A Original Cost Per Unit $0.65 0.40 0.60 0.30 Replacement Cost 50.30 0.35 0.65 0.70 D E to 10% of selling price and a normal profitis 20% of selling price. There are 1,500 units of each item in the 13/3321 Selling pri inventory Allowance to Reduce Inventory to Market Cost of Goods Sold Preparati automaty Loss Due to Decline of Inventory to Market Date Recovery Due to Market Incline of Inventory 12/31/20 Profit Due to Market Decline of Inventory wer-of-cost or market procedura assuming Sunland use a contra account for its balance sheet. (Credit account bitte not indent manually) Debit Credit Complete the last three columns in the 12/31/21 schedule below based upon the lower-of-cost or market rules Original Cost Per Unit Replacement Cost Net Realizable Value Net Realizable Value Less Normal Profit Appropriate Inventory Value Item