Answer:
Tatum Company
1. The carrying value of inventory at December 31, 2021 is:
$342,000
2. Adjusting Journal Entry:
Debit Inventory write-downs $47,000
Credit Inventory $47,000
To record the write-down of inventory value to LCNRV.
Explanation:
a) Data and Calculations:
Product Total Cost Total Net Reali- LCNRV Write-downs
zable Value
101 $ 154,000 $ 117,000 $ 117,000 $ 37,000
102 111,000 127,000 111,000 0
103 77,000 67,000 67,000 10,000
104 47,000 67,000 47,000 0
Total $ 389,000 $ 378,000 $ 342,000 $ 47,000
