Calculate the final inventory value for Spartan Corp based on individual inventory items using the lower-of-cost-or-market method. Record the journal entry to write-down inventory assuming the write-down is common for the inventory.

Extra credit

Use the following information for questions 1 & 2 (6 pts total)
Spartan Corp. manufactures and sells two products. Information related to the inventory of
Spartan Corp is provided below.
Cost
Replacement
Cost
Net
Realizable
Value
Net Realizable
Value Less a
Normal Profit
Margin
Product A
Models
Elite 115,000 105,000 135,000 110,000
Standard 105,000 125,000 120,000 100,000
Economy 90,000 75,000 90,000 70,000

Product B
Models
Pro 65,000 60,000 90,000 55,000
Residential 55,000 65,000 80,000 60,000

1. Calculate the final inventory value for Spartan Corp based on individual inventory items using the lower–of–cost–or–market method:


2. Record the journal entry to write–down inventory assuming the write–down is common for the inventory.

Presented below is information related to Spartan Company (10 pts total).

Cost Retail
Beginning inventory $ 250,000 $ 300,000
Purchases 1,450,000 2,250,000
Markups 95,000
Markup cancellations 25,000
Markdowns 25,000
Markdown cancellations 15,000
Sales revenue 2,300,000

3. Compute the ending inventory by the conventional retail inventory method (5 pts).


4. Compute the ending inventory by the cost retail inventory method (5 pts)

Presented below is information related to Cougar Company (9 pts total).
Cougar Company manufactures one product and uses dollar–value LIFO to determine its ending  inventory. The company reported $940,000 inventory On December 31, 2019. Inventory data are
as follows:
Inventory at Price index
Year year–end prices (base year 2019)
2020 $1,248,000 1.04
2021 1,680,000 1.05
2022 1,748,000 1.15

5. Compute the inventory at December 31, 2020 and 2021 using the dollar–value LIFO method for each year.