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Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows. The cost to sell for each product consists of
Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows. The cost to sell for each product consists of a 10 percent sales commission. The normal profit for each product is 25 percent of the selling price. Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or matket (LCM) rule is applled 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 amourt calculated in requirement 2. Complete this question by entering your answers in the tabs below. Required: 1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is appllied 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 ainount calculated in requirement 2 Complete this question by entering your answers in the tabs below. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (L.CM) rule is applied to individual products. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. 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.) Asuming iriventory write dowy are common for Forested, rwoord any necessary year-ind odjusting entiy baved on the amount entiy rexpluked" in the first acconint fichi.) Journal entry worksheet Record any necessary year-end adjusting entry assuming that inwontory writedowns are cornmon for Forester Company. Noter funer debits before cu edits
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