Information about the ending inventories of Charleston Chair Company, who applies the LIFO method, is shown below: Year Cost Current Selling Cost of Normal Replacement Cost Price Completion Profit Margin 2020 $10,000 $11,500 $12,000 $1,000 $1,100 2021 15,000 13,000 14,000 1,500 1,250 2022 20,000 18,600 24,000 2,200 2,900 Required: a. Determine the value of the inventory for each year using the lower of cost or market rule. b. Assuming that Charleston Chair Company maintains a periodic inventory system, prepare journal entries for 2022 to record the reduction of the inventory to market value using: 1. the direct method 2. the allowance method

Information about the ending inventories of Charleston Chair Company, who applies the LIFO method, is shown below: Year Cost Current Selling Cost of Normal Replacement Cost Price Completion Profit...

Information about the ending inventories of Charleston Chair Company, who applies the LIFO method, is shown below:

Year	Cost	Current	Selling	Cost of	Normal
Replacement Cost	Price	Completion	Profit Margin
2020	$10,000	$11,500	$12,000	$1,000	$1,100
2021	15,000	13,000	14,000	1,500	1,250
2022	20,000	18,600	24,000	2,200	2,900

Required:

Determine the value of the inventory for each year using the lower of cost or market rule.

Assuming that Charleston Chair Company maintains a periodic inventory system, prepare journal entries for 2022 to record the reduction of the inventory to market value using:

1.	the direct method
2.	the allowance method

Jun 10, 2022

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Information about the ending inventories of Charleston Chair Company, who applies the LIFO method, is shown below: Year Cost Current Selling Cost of Normal Replacement Cost Price Completion Profit...

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