Reference no: EM132485182

The following information pertains to Hagen Metal Work's ending inventory for the current year:

Item Quantity unit cost Unit market value

C           90               $24        $16

D           75              22            20

K           40              25              28

M           22              15             17

Required

Question a. Show the value of the ending inventory using the lower-of-cost-or-market rule applied to (1) each individual inventory item and (2) the inventory in aggregate.

Ending Inventory

lndividual Item Method -

Aggregate Method -

Question b. Show any necessary journal entries, assuming the decline in value is immaterial, using the (1) individual method and (2) aggregate method. Hagen Metal Works uses the perpetual inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal Entry.

a. Write entry for cost of goods sold using individual item method.

b. Write entry for cost of goods sold using aggregate method.