inventory would be reported on the balance sheet at what value if rocket uses the av 559720

Applying the lower of cost or market rule

Assume that a Rocket Burger restaurant has the following perpetual inventory record for hamburger patties:

Hamburger Patties

Date

Purchases

Cost of Goods Sold

Inventory on Hand

Feb 9

$ 470

$ 470

22

$ 280

190

28

210

400

Requirements

1. At February 28, the accountant for the restaurant determines that the current replacement cost of the ending inventory is $447. Make any adjusting entry needed to apply the lower of cost or market rule. Inventory would be reported on the balance sheet at what value on February 28?

2. Inventory would be reported on the balance sheet at what value if Rocket uses the average cost method?

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