Reference no: EM132485210

At the end of the year, Randy's Parts Co. had the following items in inventory:

Item           quantity          Unit Cost            unit Market value

p1               67               $92                      $94

P2               36                  70                     80

P3              87                134                      122

P4              37                 56                         64

Question A. SHOW the amount of ending inventory using the lower-of-cost-or-market rule applied to each individual inventory item.

Question B. Show the general journal entry necessary to write down the inventory based on Requirement a. Assume that Randy's Parts Co. uses the perpetual inventory system.

I.) indicate the entry for inventory loss.

Question C. SHOW the amount of ending inventory, assuming that the lower-of-cost-or-market rule is applied to the total inventory in aggregate.

Question D. SHOW the general journal entry necessary to write down the inventory based on Requirement c. Assume that Randy's Parts Co. uses the perpetual inventory system.

I) Record entry for inventory loss