Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. at 12/31/20, the end of sandhill company's first y

At 12/31/20, the end of Sandhill Company's first year of business, inventory was $6,600 and...

90.2K

Verified Solution

Question

Accounting

At 12/31/20, the end of Sandhill Company's first year of business, inventory was $6,600 and $5,100 at cost and at market, respectively. Following is data relative to the 12/31/21 inventory of Jenner:

Item Original Cost Per Unit Replacement Cost
A $0.55 $0.40
B 0.50 0.45
C 0.90 0.95
D 0.60 0.50
E 0.70 0.65

Selling price is $1.00/unit for all items. Disposal costs amount to 10% of selling price and a "normal" profit is 30% of selling price. There are 1,400 units of each item in the 12/31/21 inventory.

(a)

Prepare the entry at 12/31/20 necessary to implement the lower-of-cost-or-market procedure assuming Sandhill uses a contra account for its balance sheet. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

12/31/20

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

1. In League of Legends, a player’s Effective Health when defending against physical damage is given...

Basic Math
Q

Choose correct answers: Which of the following are true of nuclear receptors? Question 7 options: A initially in cytoplasm...

Biology
Q

Define and describe the following three concepts (Midlife Crisis, Empty Nest Syndrome, & Sandwich Generation). In...

Psychology
Q

n what way do contemporary artists consider issues of national and cultural identity? What are their...

Psychology
Q

the value of x ne 576 cm 8 cm one ck 18 cm 36 cm...

Geometry
Q

Graph of a function y f x is shown Evaluate 2 S 4 f x...

Calculus
Q

Capwell Corporation uses a periodic inventory system, the balance sheet approach to estimate uncollectibles, and...

Accounting
Q

c. net sales are $75,000, gross margin is $45,000, and operating expenses are $37,000

Accounting
Q

Kindly answer the following: 1. Rate your understanding about the extinguishment of sale. 1 being...

Accounting
Q

Chandler and Garrett Company has 3,000 units in beginning work in process, 30% complete as...

Accounting
Q

In 2016, the Westgate Construction Company entered into a contract to construct a road for...

Accounting
Q

Kohler Corporation reports the following components of stockholders equity at December 31 of the prior...

Accounting