Grouper Company began operations in 2016 and determined its ending inventory at
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Grouper Company began operations in 2016 and determined its ending inventory at cost and at lower-of-LIFO cost-or-market at December 31, 2016, and December 31, 2017. This information is presented below:
Secure https://edugen.wileyplus.com/edugen/shared/assignment/test/qprint.uni Exercise 9-8 Grouper Company began operations in 2016 and determined its ending inventory at cost and at lower-of-LIFO cost-or-market at December 31, 2016, and December 31, 2017. This information is presented below: Cost Lower-of-Cost-or-Market 12/31/16 12/31/17 $342,180 412,170 $361,050 427,280 (a) Prepare the journal entries required at December 31, 2016, and December 31, 2017, assuming that the inventory is recorded at market, and a perpetual inventory system (cost-of-goods-sold method) is used. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit 12/31/16 12/31/17 (b) Prepare journal entries required at December 31, 2016, and December 31, 2017, assuming that the inventory is recorded at market under a perpetual system (loss method is used). (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit 12/31/16 12/31/17 (c) Which of the two methods above provides the higher net income in each year? Question Attempts: 0 of 3 usedExplanation / Answer
a)
b)
c) Both the method will have same net income.
Cost NRV Differecnce 31-Dec-16 $ 361,050 $ 342,180 $ 18,870 31-Dec-17 $ 427,280 $ 412,170 $ 15,110Related Questions
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