atum Company has four products in its inventory. Information about ending inventory is as follows:ProductTotal Cost101$ 149,000102110,80010373,80010437,500Total ReplacementCost$ 136,100Total NetRealizable Value$ 123,700104,60049,200135,40035,00062,10062,800he normal profit is 40% of total cost.equired:1. Determine the carrying value of inventory assuming the lower of cost or market (LCM) rule is applied to individualproducts.2. Assuming that inventory write-downs are common for Tatum Company, record any necessary year-end adjusting entry.Complete this question by entering your answers in the tabs below.Required 1 Required 2Determine the carrying value of inventory assuming the lower of cost or market (LCM) rule is applied to individual products.ProductTotal CostReplacementcostNRVNRV minus NPMarketInventory Value101$149,000 $136,100 $123,700102110,800104,600135,40010373,80049,20062,10010437,50035,00062,800Totals$371,100< Required 1Required 2 >

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Description: atum Company has four products in its inventory. Information about ending inventory is as follows:ProductTotal Cost101$ 149,000102110,80010373,80010437,500Total ReplacementCost$ 136,100Total NetRealizable Value$ 123,700104,60049,200135,40035,00062,1

Lower of cost or market is an approach to valuation of inventory. The concept of lower of cost and…

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Accounting

atum Company has four products in its inventory. Information about ending inventory is as follows: Product Total Cost 101 $ 149,000 102 110,800 103 104 73,800 37,500 Total Replacement Cost $ 136,100 104,600 49,200 35,000 Total Net Realizable Value $ 123,700 135,400 62,100 62,800

atum Company has four products in its inventory. Information about ending inventory is as follows: Product Total Cost 101 $ 149,000 102 110,800 103 104 73,800 37,500 Total Replacement Cost $ 136,100 104,600 49,200 35,000 Total Net Realizable Value $ 123,700 135,400 62,100 62,800

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 2RE: Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net...

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