Re Company prepared the following analysis of its year-end inventory at June 30th:
$\begin{array}{llll}
&&\underline { \text { Histonical Cost }}&\underline { \text { Replacement Cost }}\
\underline { \text {Product }}&\underline { \text {Quantity}}&\underline { \text { per unit }}&\underline { \text { per unit }} \
\mathrm{A} & 17 & \$ 430 & \$ 499 \
\mathrm{~B} & 140 & 325 & 299 \
\mathrm{C} & 38 & 75 & 69
\end{array}$ Determine the lower of cost or market value for each product in Re Company's inventory and prepare the journal entry needed at year-end to value the inventory at LCM.

Question

Re Company prepared the following analysis of its year-end inventory at June 30th:
 $\begin{array}{llll}
&&\underline { \text { Histonical Cost }}&\underline { \text { Replacement Cost }}\
\underline { \text {Product }}&\underline { \text {Quantity}}&\underline { \text { per unit    }}&\underline { \text {    per unit }}  \
\mathrm{A} & 17 & \$ 430 & \$ 499 \
\mathrm{~B} & 140 & 325 & 299 \
\mathrm{C} & 38 & 75 & 69
\end{array}$ Determine the lower of cost or market value for each product in Re Company's inventory and prepare the journal entry needed at year-end to value the inventory at LCM.

Quizplus · Accepted Answer

The Answer of Re Company prepared the following analysis of its year-end inventory at June 30th:
 $\begin{array}{llll}
&&\underline { \text { Histonical Cost }}&\underline { \text { Replacement Cost }}\
\underline { \text {Product }}&\underline { \text {Quantity}}&\underline { \text { per unit    }}&\underline { \text {    per unit }}  \
\mathrm{A} & 17 & \$ 430 & \$ 499 \
\mathrm{~B} & 140 & 325 & 299 \
\mathrm{C} & 38 & 75 & 69
\end{array}$ Determine the lower of cost or market value for each product in Re Company's inventory and prepare the journal entry needed at year-end to value the inventory at LCM.

Re Company Prepared the Following Analysis of Its Year-End Inventory