Information about the ending inventories of Charleston Chair Company, who applies the LIFO method, is shown below. Selling Price Year 2020 2021 2022 Cost $10,000 15,000 20,000 Current Replacement Cost $11,500 13,000 18,600 $12,000 14,000 24,000 Cost of Completion $1,000 1,500 2,200 Normal Profit Margin $1,100 1,250 2,900 Required: a. Determine the value of the inventory for each year using the lower of cost or market rule. b. Assuming that Charleston Chair Company maintains a periodic inventory system, prepare journal entries for 2022 to record the reduction of the inventory to market value using: 1. the direct method 2. the allowance method
Information about the ending inventories of Charleston Chair Company, who applies the LIFO method, is shown below. Selling Price Year 2020 2021 2022 Cost $10,000 15,000 20,000 Current Replacement Cost $11,500 13,000 18,600 $12,000 14,000 24,000 Cost of Completion $1,000 1,500 2,200 Normal Profit Margin $1,100 1,250 2,900 Required: a. Determine the value of the inventory for each year using the lower of cost or market rule. b. Assuming that Charleston Chair Company maintains a periodic inventory system, prepare journal entries for 2022 to record the reduction of the inventory to market value using: 1. the direct method 2. the allowance method
Chapter10: Inventory
Section: Chapter Questions
Problem 11MC: Which of the following describes features of a perpetual inventory system? A. Technology is normally...
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Hi !!! I need some help with part B. Thank you!
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