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Return to qu Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Product Quantity 1,000 800 600 200
Return to qu Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Product Quantity 1,000 800 600 200 600 Unit Replacement Cost $12 11 2 4 12 Unit Cost 5 10 15 3 7 14 B D Unit Selling Price $16 18 8 6 13 The cost to sell for each product consists of a 15 percent sales commission. The normal profit for each product is 40 percent of the selling price. Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to Individual products. 2. Determine the carrying value of inventory at December 31, 2021, assuming the LCM rule is applied to the entire inventory 3. Assuming Inventory write-downs are common for Forester, record any necessary year-end adjusting entry based on the amount calculated in requirement 2 3 of 5 !!! Next > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products. (Do not round intermediate calculations RC NRV NRV-NP Market $ 15 x s 8 xs Product (units) A (1,000) B (800) C (600) D (200) E (600) 12 X $ 11 2X 16 X 3 X 5 X 5 X 12 XS 11 X 3X 4X 12 X 42 $ Cost Inventory Value 8 S 10,000 11 X 8,800 3 1,500 4 X 800 12 X 7,020 X 38 28,120 4. 3 x P 12 x 7 X 12 % 2 Total is $ Required 1 Required 2 Required 3 Determine the carrying value of inventory at December 31, 2021, assuming the LCM rule is applied to the entire inventory (Do not round intermediate calculations.) Inventory carrying value 24,820 X Pomured 1 Required 3 > Required 1 Required 2 Required 3 Assuming Inventory write-downs are common for Forester, record any necessary year-end adjusting entry based on the amount calculated in requirement 2. (Do not round intermediate calculations. If no entry is required for a transaction/event select "No journal entry required in the first account field.) Credit No Transaction Debit 3.600 1 General Journal Allowance for uncollectible accounts Inventory 3.600
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