QUESTION 5: P6-9ATascon Corporation sells coffee beans, which are sensitive to price fluctuations. The following...
80.2K
Verified Solution
Link Copied!
Question
Accounting
QUESTION 5: P6-9ATascon Corporation sells coffee beans, which are sensitive to price fluctuations. The following inventory information is available for this product at December 31, 2018:
Coffee Bean
Units
Unit Cost
Net Realizable Value
Coffea arabica
13,000 bags
$5.60
$5.55
Coffea robusta
5,000 bags
3.40
3.50
(a) Calculate Tascons inventory at the lower of cost and net realizable value.
(b) Prepare any journal entry required to record the LCNRV, assuming that Tascon uses a perpetual inventory system.
(c) Explain whether Tascon should consider each type of coffee bean separately when determining the lower of cost and net realizable value. Identify an argument in support of both types of coffee beans being considered as part of one inventory grouping.
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!
