A local Chevrolet dealership carries the following types of vehicles: Inventory Items Quantity Unit NRV Vans Unit Cost $19,000 16,400 $17,000 Trucks 15,400 11,400 13,400 15,400 2 door sedans 4-door sedans Sports cars SUVS 18,400 29,000 32,000 26,880 20,000 Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks. Determine the financial statement effects of using lower of cost and net reali Determine the financial statement effects of using lower of cost and net realizable value to report inventory. (Make sure to enter amounts leading to account reduction with a minus sign.) Revenues Assets Income Statement: Balance Sheet: Expenses Liabilities Net Income Stockholders' Equity

A local Chevrolet dealership carries the following types of vehicles: Inventory Items Quantity Unit NRV Vans Unit Cost $19,000 16,400 $17,000 Trucks 15,400 11,400 13,400 15,400 2 door sedans 4-door sedans Sports cars SUVS 18,400 29,000 32,000 26,880 20,000 Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks. Determine the financial statement effects of using lower of cost and net reali Determine the financial statement effects of using lower of cost and net realizable value to report inventory. (Make sure to enter amounts leading to account reduction with a minus sign.) Revenues Assets Income Statement: Balance Sheet: Expenses Liabilities Net Income Stockholders' Equity

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A local Chevrolet dealership carries the following types of vehicles: Inventory Items Quantity Unit Cost Unit NRV Vans 3 $18,000 $16,000 Trucks 6 16,200 15,200 2-door sedans 2 11,200 13,200 4-door sedans 7 15,200 18,200 Sports cars 3 28,000 31,000 SUVs 5 26,400 19,000 Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks. Required: 4. Determine the financial statement effects of using lower of cost and net realizable value to report inventory. (Make sure to enter amounts leading to account reduction with a minus sign.) I need assistance solving Requirement 4 (specifically, the four boxes with a red 'X', which are currently not correct). Requirements 1 through 3 have already been answered correctly -- a screenshot is attached to show those values. For Requirement 4, the text presets available to choose from are as follow: No Journal Entry Required Accounts Payable Accounts Receivable…
A local Chevrolet dealership carries the following types of vehicles: Inventory Items Quantity Unit Cost Unit NRV Vans 3 $18,000 $16,000 Trucks 6 16,200 15,200 2-door sedans 2 11,200 13,200 4-door sedans 7 15,200 18,200 Sports cars 3 28,000 31,000 SUVs 5 26,400 19,000 Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks. Required: 4. Determine the financial statement effects of using lower of cost and net realizable value to report inventory. (Make sure to enter amounts leading to account reduction with a minus sign.) Please help me with Requirement 4! Requirements 1 through 3 have all been answered correctly -- I attached a screenshot of those values in case they might be needed for Requirement 4. For Requirement 4, the text presets to choose from are as follow:
[The following information applies to the questions displayed below.]A local Chevrolet dealership carries the following types of vehicles: Unit Unit Inventory Items Quantity Cost NRV Vans 4 $ 24,000 $ 22,000 Trucks 7 17,400 16,400 2-door sedans 3 12,400 14,400 4-door sedans 5 16,400 19,400 Sports cars 1 34,000 37,000 SUVs 6 28,800 25,000 Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks. 3. Prepare necessary entry to write down inventory from cost to net realizable value Journal entry worksheet Record the adjustment for inventory. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Cost of Goods Sold Inventory
[The following information applies to the questions displayed below.]A local Chevrolet dealership carries the following types of vehicles: Unit Unit Inventory Items Quantity Cost NRV Vans 4 $ 24,000 $ 22,000 Trucks 7 17,400 16,400 2-door sedans 3 12,400 14,400 4-door sedans 5 16,400 19,400 Sports cars 1 34,000 37,000 SUVs 6 28,800 25,000 Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks. Journal entry worksheet Record the adjustment for inventory. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Cost of Goods Sold Inventory
A local Chevrolet dealership carries the following types of vehicles: Unit Unit Inventory Items Quantity Cost NRV $ 27,000 18,000 Vans 4 $25,000 Trucks 7 17,000 2-door sedans 13,000 15,000 4-door sedans 17,000 20,000 Sports cars 1 37,000 40,000 SUVS 6 30,000 28,000 Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVS, vans, and trucks. 5. 2. Determine whether each inventory item would be reported at cost or net realizable value (NRV). Enter the amount of either the Unit Cost or Unit NRV in the "Lower of Cost and NRV per unit" column and then multiply this amount by the quantity of each inventory item and enter it in the Total column. Lower of Cost Inventory Items Cost or NRV and NRV per Total unit Vans Trucks 2-door sedans 4-door sedans Cost Sports cars NRV SUVS Total %24
Book Print cames the following types of vehicles: Quantity 3 Unit Cost $ 21,000 16,809 11,800 6 Inventory Items Vans Trucks 2-door sedans 4-door sedans Sports cars SUVS Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks. Required: 1. Compute the total cost of the entire inventory. 2. Determine whether each inventory item would be reported at cost or net realizable value (NRV). Enter the amount of either the Unit Cost or Unit NRV in the "Lower of Cost and NRV per unit" column and then multiply this amount by the quantity of each inventory item and enter it in the "Total" column. 2 7 3 5 15,800 31,000 27,600 Required 1 Required 2 Required 3 Assets Unit NRV $ 19,000 15,800 13,800 18,800 3. From the information in the previous requirements, determine the financial statement effects of using lower of cost and net realizable value to report inventory. 34,000 22,000 Complete this question by entering your answers in…
Used Cars Inc. has the following inventory of vehicles: Cost NRV Vehicle A $ 25,000 $ 25,500 Vehicle B 50,000 40,000 Vehicle C 16,000 18,000 Vehicle D 22,000 21,500 $113,000 $105,000 In applying the lower of cost and net realizable value rule, by how much would Used Cars need to adjust its inventory?
Waterway Company's inventory records show the following data: Units Unit Cost Inventory, January 1 10200 $9.20 Purchases: June 18 8600 9.00 November 8 6200 6.00 A physical inventory on December 31 shows 4000 units on hand. Waterway sells the units for $13 each. The company has an effective tax rate of 20%. Waterway uses the periodic inventory method. What is the cost of goods available for sale?
Use the following to answer questions 7 – 17 During September, KC Company sells 730 mountain bikes for $1,000 each. The company has the following inventory purchase transactions: Date Transaction # of Units Unit cost Total Cost 1-Sep Beginning Inventory 7-Sep 19-Sep 50 $710 $35,500 Purchase 425 S715 303,875 Purchase 275 $723 198,825 750 S538,200 7. $ period? What were company's sales for the For questions 8 - 10 assume the company uses First-in, First-out (FIFO) inventory valuation. Calculate ending inventory (FIFO) Calculate cost of goods sold (FIFO) 8. $ 9. $ 10. $ Calculate gross profit (FIFO) For questions 11 - 13 assume the company uses Last-in, First-out (LIFO) inventory valuation. 11. $ Calculate ending inventory (LIFO) 12. $ Calculate cost of goods sold (LIFO) 13. $ Calculate gross profit (LIFO) For questions 14 - 16 assume the company uses Weighted Average cost inventory valuation.
Anton Company uses the perpetual inventory system and FIFO cost flow method. During the year, Anton purchased 400 units of inventory that cost $12.00 each and then purchased an additional 600 units of inventory that cost $16.00 each. If Anton sells 700 units of inventory, what is the amount of cost of goods sold? Multiple Choice O OOO $8,400 $11,200 $9,600 $10,400
S sells three products – Basic, Super and Luxury. The following information was available at the year end. Basic Super Luxury $ per unit $ per unit $ per unit Original cost 6 9 18 Estimated selling price 9 12 15 Selling and distribution costs 1 4 5 units units units Units of inventory 200 250 150 What is the value of inventory at the year end?
Used Motorcycles Inc. has the following inventory of motorcycles:Cost NRVModel A $ 15,000 $ 15,500Model B 25,000 22,000Model C 17,000 19,000In applying the lower of cost and net realizable value rule, by how much would Used Motorcycle need to adjust its inventory?