Majik Carpet Company sells its carpet inventory using a perpetual inventory system. Its inventory opening balances, purchases and sales activity for the month of June, 2020 follows:
Majik Carpet uses the specific identification method when assigning costs to ending inventory.
-Would an entry be needed if the calculation of LCNRV was made on a group basis? If so, make the entry. If not, state why.

Question

Majik Carpet Company sells its carpet inventory using a perpetual inventory system. Its inventory opening balances, purchases and sales activity for the month of June, 2020 follows:
  Majik Carpet uses the specific identification method when assigning costs to ending inventory.
-Would an entry be needed if the calculation of LCNRV was made on a group basis? If so, make the entry. If not, state why.

Quizplus · Accepted Answer

The Answer of Majik Carpet Company sells its carpet inventory using a perpetual inventory system. Its inventory opening balances, purchases and sales activity for the month of June, 2020 follows:
  Majik Carpet uses the specific identification method when assigning costs to ending inventory.
-Would an entry be needed if the calculation of LCNRV was made on a group basis? If so, make the entry. If not, state why.

Majik Carpet Company Sells Its Carpet Inventory Using a Perpetual