The inventory of Pharoah Company on December 31, 2020, consists of the following items. Part A419 A435 A545 A615 A721 A885 A999 Cost per Quantity unit 6,200 $15 5,270 11 12,524 10 9,300 14 13,640 12 17,360 20 11,408 9 Net Realizable Value $26 9 15 10 14 25 1 Part No. A999 is obsolete and has a realizable value of $1 each as scrap. (a) Determine the Inventory as of December 31, 2020, by the LCNRV method, applying this method to each item. Inventory as of December 31, 2020 (b) Determine the inventory by the LCNRV method, applying the method to the total of the inventory Inventory as of December 31, 2020 5 FU Question 2 Presented below is information related to Marin, Inc. Cost $331,500 1,482,000 63,180 Retail $585,000 2,613,000 11,700 Beginning inventory Purchases Freight on purchases Markups Markup cancellations Abnormal shortage Markdowns Markdown cancellations Employee discounts Sales revenue Sales returns Normal shortage Purchase returns 136,500 109,200 20,280 68,640 9,360 4,056 2,788,500 78,000 13,650 31,980 17,160 Compute ending inventory by the conventional retail inventory method. (Round percentages for comput: e.g. 0.4158 to 41.6% and final answer to O decimal places, e.g. 5,275.) Ending Inventory You are called by Tim Duncan of Kingbird Co. on July 16 and asked to prepare a claim for insurance as a result of a theft that took place the night before. You suggest that an inventory be taken immediately. The following data are available. Inventory, July 1 $ 41,400 Purchases-goods placed in stock July 1-15 87,200 Sales revenue-goods delivered to customers (gross) 123,900 Sales returns-goods returned to stock 4,400 Your client reports that the goods on hand on July 16 cost $32,800, but you determine that this figure includes goods of $5,800 received on a consignment basis. Your past records show that sales are made at approximately 30% over cost. Duncan's insurance covers only goods owned Compute the claim against the insurance company. (Round ratios for computational purposes to 2 decimal places, e.g. 78.73% and final answer to 0 decimal places, e.g. 28,987.) Claim against the insurance company Blossom Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Cost Estimated Cost of Item per Cost to Selling Completion Normal No. Quantity Unit Replace Price and Disposal Profit 1320 1,600 $3.94 $3.69 $5.54 $0.43 $1.54 1333 1,300 3.32 2.83 4.31 0.62 0.62 1426 1,200 5.54 4.55 6.15 0.49 1.23 1437 1,400 4.43 3.81 3.94 0.31 1.11 1510 1,100 2.77 2.46 4.00 0.98 0.74 1522 900 3.69 3.32 .67 0.49 0.62 1573 3,400 2.21 1.97 3.08 0.92 0.62 1626 1,400 5.78 6.40 7.38 0.62 1.23 From the information above, determine the amount Blossom Company Inventory. The amount of Blossom Company's Inventory Swifty Company began operations in 2019 and determined its ending inventory at cost and at lower-of-LIFO cost-or-market at December 31, 2019, and December 31, 2020. This information is presented below: Cost Lower-of-Cost-or-Market 12/31/19 $358,190 $339,480 12/31/20 423,900 408,920 (a) Prepare the journal entries required at December 31, 2019, and December 31, 2020, assuming that the inventory is recorded at market, and a perpetual Inventory system (cost-of-goods-sold method) is used. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit 12/31/19 12/31/20 (b) Prepare journal entries required at December 31, 2019, and December 31, 2020, assuming that the inventory is recorded at market under a perpetual system (loss method is used). (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts.) Date Account Title and explanation Debit Credit 12/31/19 Vari. 12/31/20 (b) Prepare journal entries required at December 31, 2019, and December 31, 2020, assuming that the inventory is recorded at market under a perpetual system (loss method is used). (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit 12/31/19 12/31/20 (c) Which of the two methods above provides the higher net income in each year