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8 Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Unit Unit Unit Replacement Selling 8 02-18:50 Product Quantity Cost Cost Price 1, 000 17 $19 $23 790 22 18 25 mongs 1, 000 10 9 15 900 14 11 13 600 21 19 20 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. 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.) Product Inventory RC (units) NRV NRV-NP Market Cost carrying value A (1000) B (700) C (1000) D (900) E (600) Total o S 0 Required 1 Required 2 >8 Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Unit Unit Unit Replacement Selling 02-18:27 Product Quantity Cost Cost Price A 1, 000 $ 17 $19 $23 700 22 18 25 1, 000 10 15 101 900 14 11 13 600 21 19 20 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. 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 LCM rule is applied to the entire inventory. Do not round intermediate calculations.) Inventory carrying value 8 Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Unit Unit Unit Replacement Selling 02-18:01 Product Quantity Cost Cost Price 1,000 $ 17 $19 $23 700 22 18 25 mona 1,060 10 15 900 11 13 606 19 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. Complete this question by entering your answers in the tabs below. 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 journa entry required" in the first account field.) View transaction list Journal entry worksheet Record any necessary year-end adjusting entry assuming that inventory write- downs are common for Forester Company. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal
