a. Assuming a perpetual inventory system, prepare journal entries for 2020, 2021, 2022 to record the reduction of the inventory to market value using the loss-allowance method. b. Assuming a perpetual inventory system, prepare journal entries for 2020, 2021, 2022 to record the reduction of the inventory to market value using the cost of goods sold-inventory method.
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- The inventory of Ivanhoe Company on December 31, 2020, consists of the following items. Cost per Net Realizable Part Quantity unit Value A419 3,400 $ 8 $ 14 A435 2,890 6 5 A545 6,868 5 8 A615 5,100 7 5 A721 7,480 7 7 A885 9,520 11 14 a A999 6,256 5 1 a Part No. A999 is obsolete and has a realizable value of $ 1 each as scrap. LORefer to the information for Cox Inc. above. What amount would Cox record as depreciation expense for 2019 if the units-of-production method were used ( Note: Round your answer to the nearest dollar)? a. $179,400 b. $184,000 c. $218,400 d. $224,00014. You are given the following details of the company L. for the financial year 1.1.2020-31.12.2020 Beginning inventory of direct materials 120000Purchases of direct materials 228000Direct labor cost 610000direct cost (Initial cost) 780000 The cost of the ending inventory on 31.12.2020 of direct materials is:a. 178000b. 170000c. 150000d.348000
- The inventory of Carla Vista Company on December 31, 2020, consists of the following items. Cost per Net Realizable Part Quantity unit Value A419 6,800 $ 16 $ 29 A435 5,780 12 10 A545 13,736 11 16 A615 10,200 15 11 A721 14,960 14 15 A885 19,040 22 27 a A999 12,512 10 1 a Part No. A999 is obsolete and has a realizable value of $ 1 each as scrap.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 %24The inventory of Coronado Company on December 31, 2020, consists of the following items. Part Quantity Cost per Unit Net Realizable Value 110 620 $117.00 $123.00 111 920 73.80 64.00 112 530 98.40 93.00 113 190 209.10 221.40 120 370 252.00 256.00 121 a 1,700 20.00 1.00 122 330 295.20 289.00 a Part No. 121 is obsolete and has a realizable value of $1.00 each as scrap.(a) Determine the inventory as of December 31, 2020, by the LCNRV method, applying this method to each item.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 $enter the Inventory as of December 31 in dollars (b) Determine the inventory by the LCNRV method, applying the method to the total of the inventory. Inventory as of December 31, 2020 $enter the Inventory as of December 31 in dollarsThe inventory of Wildhorse Company on December 31, 2020, consists of the following items. Part Quantity Cost per Unit Net Realizable Value 110 660 $128.00 $135.00 111 1,040 81.00 70.00 112 540 108.00 103.00 113 210 229.50 243.00 120 410 277.00 281.00 121 a 1,700 22.00 1.00 122 280 324.00 317.00 a Part No. 121 is obsolete and has a realizable value of $1.00 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 $enter the Inventory as of December 31 in dollars
- The inventory of Wildhorse Company on December 31, 2020, consists of the following items. Part Quantity Cost per Unit Net Realizable Value 110 660 $128.00 $135.00 111 1,040 81.00 70.00 112 540 108.00 103.00 113 210 229.50 243.00 120 410 277.00 281.00 121 a 1,700 22.00 1.00 122 280 324.00 317.00 a Part No. 121 is obsolete and has a realizable value of $1.00 each as scrap.(a) Determine the inventory as of December 31, 2020, by the LCNRV method, applying this method to each item. (b) Determine the inventory by the LCNRV method, applying the method to the total of the inventory.The products of ABC can be grouped into two major categories: products A1 and A2 are in Category A, while products B1 and B2 are in category B. Assume the following information regarding ABC's inventories for year 2021: Product A1 Transaction Number of Units Unit Cost Unit Price Beginning inventory 400 €5 Purchase No. 1 400 €5 Sale No.1 600 €10 Sale No.2 100 €12 Purchase No. 2 1,000 €7 Sale No.3 700 €10 Purchase No. 3 1,000 €7 Sale No.4 600 €15 Sale No.5 600 €15 Purchase No. 4 1,200 €9 Selling price as at December 31, 2021 €14 Product A2 Transaction Beginning inventory Number of Units 500 Unit Cost €8 Unit Price Sale No.1 400 €12 Purchase No. 1 600 €8 Purchase No. 2 500 €7 Sale No.2 650 €12 Purchase No. 3 150 €9 Purchase No. 4 200 €8 Selling priceas at December 31, €11 2021…The inventories of Berry Company for the years 2019 and 2020 are as follows: Cost NRVJanuary 1, 2019 $10,000 $10,000December 31, 2019 13,000 11,500December 31, 2020 15,000 14,000 Berry uses the periodic inventory method and the FIFO inventory cost flow assumption. Required: 1. Assume the inventory that existed at the end of 2019 was sold in 2020. Prepare the necessary journal entries at the end of each year to record the correct inventory valuation if Berry uses the: a. direct method b. allowance method 2. Refer to your answer for E8-6. How does the use of a periodic or perpetual inventory system affect the valuation of inventory?
- During 2019, there was no change in either materials or the WP inventories. However, FG, which had a beginning balance of P25,000, increased by P 15,000. 14. If the manufacturing costs incurred totaled P 600,000 during 2019, the goods available for sale must have been: a. P 585,000 b. Р 600,000 C. P 610,0009W d. P 625,000 0019 leister o20. Oreo Company started operations in 2021. The following data are abstracted from the purchases and sales records: 2021 2022 2023 Units purchased Number of units sold 100,000 145,000 130,000 160,000 155,000 135,000 Unit cost 40 50 60 The entity used FIF0 method. What amount should be reported as cost of goods sold for 2023? 7,800,000 O 7,100,000 7,700,000 8,300,000The inventory of Metlock Company on December 31, 2020, consists of the following items. Part Quantity Cost per Unit Net Realizable Value 110 570 $113.00 $119.00 111 970 71.40 62.00 112 540 95.20 90.00 113 180 202.30 214.20 120 380 244.00 248.00 121 1,500 19.00 1.00 122 300 285.60 280.00 a Part No. 121 is obsolete and has a realizable value of $1.00 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 $4 (b) Determine the inventory by the LCNRV method, applying the method to the total of the inventory.