Suppose that you must prepare quarterly financial statements, and the following table has been started. From examination of prior years' financial statements, you know that the gross profit margin is 20%. Calculate the unknown balances using the gross profit method.

Sales	$210,000
Cost of Goods Sold
Opening Inventory	$117,000
Purchases	$127,000
Cost of Goods Available for Sale	$Answer
Closing Inventory	$Answer
Total Cost of Goods Sold	$Answer
Gross Profit	$Answer

 

 

 

  Garden Company uses the perpetual inventory system and its inventory consists of four products as at December 31, 2016. Selected information is provided below.

Product	Number of Units	Cost	NRV	LCNRV (Individual)
1	20	$89	$103	$Answer
2	35	$84	$63	$Answer
3	30	$66	$57	$Answer
4	35	$119	$171	$Answer
Inventory Value Total		$Answer	$Answer

Required

a) Calculate the LCNRV for each product. Calculate the inventory value that should be reported on December 31, 2016, using the LCNRV applied on an individual item basis.

 LCNRV Inventory Value =$Answer

b) Using the results from part a), prepare the journal entry to adjust inventory to LCNRV.