Inventory Inventory Ending Layers at Layers at Inventory year-end cost Base Year DVL Cost cost index Cost Base Base 2016 Base 2016 2017 Base 2016 2017 2018 Problem 5 On March 17, 2013, a flood destroyed the entire inventory of Beaumont Company. The following information is available from its accounting records. Compute the estimated cost of inventory lost in the flood using the Gross Profit Method. Problem 6 Memphis Wholesale Market applies the lower-of-cost-or-NRV valuation to individual products and has collected the data presented below. a) Determine the amount of inventory to be reported on the December 31 balance sheet. b) Draft the journal entry to adjust inventory assuming this is a commonplace event. Product A Product B Product C Cost $70 $75 $80 Selling Price $100 $125 $80
Inventory Layers at year-end cost cost index Inventory Layers at Base Year Cost Ending Inventory DVL Cost Base Base 2016 Base 2016 2017 Base 2016 2017 2018 Problem 5 On March 17, 2013, a flood destroyed the entire inventory of Beaumont Company. The following information is available from its accounting records. Compute the estimated cost of inventory lost in the flood using the Gross Profit Method. Problem 6 Memphis Wholesale Market applies the lower-of-cost-or-NRV valuation to individual products and has collected the data presented below. a) Determine the amount of inventory to be reported on the December 31 balance sheet. b) Draft the journal entry to adjust inventory assuming this is a commonplace event. Product A Product B Product C Cost $70 $75 $80 Selling Price $100 $125 $80
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