1. Determine the carrying value of ending inventory, assuming the lower of cost or market...
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1. Determine the carrying value of ending inventory, assuming the lower of cost or market (LCM) rule is applied to individual products.
2. Determine the carrying value of inventory, assuming the LCM rule is applied to the entire inventory.
3. Assuming inventory write-downs are common for Forest, record any necessary year-end adjusting entry based on the amount calculated in requirement 2.
Forest Company has five products in its inventory. Information about ending 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 ending Inventory, assuming the lower of cost or market (LCM) rule is applied to individual products. 2. Determine the carrying value of Inventory, assuming the LCM rule Is applied to the entire inventory. 3. Assuming inventory write-downs are common for Forest, record any necessary year-end adjusting entry based on the amount calculated in requirement 2 . Complete this question by entering your answers in the tabs below. Determine the carrying value of ending inventory, assuming the lower of cost or market (LCM) rule is applied to individual products. Note: Do not round intermediate calculations. Complete this question by entering your answers in the tabs below. Determine the carrying value of inventory, assuming the LCM rule is applied to the entire inventory. Note: Do not round intermediate calculations. Complete this question by entering your answers in the tabs below. Assuming inventory write-downs are common for Forest, record any necessary year-end adjusting entry based on the amount calculated in requirement 2. Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Show lessa Journal entry worksheet Record any necessary year-end adjusting entry assuming that inventory writedowns are common for Forest Company. Note: Enter debits before credits
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Assuming inventory write-downs are common for Forest, record any necessary year-end adjusting entry based on the amount calculated in requirement 2.