Benjaha Company is preparing the annual financial statements dated December 31, 2015. Information about inventory stocked for regular sale follows: Instructions
a. Calculate the correct value for the December 31, 2015 ending inventory using the lower of cost and net realizable value.
b. Assume Benjaha uses a perpetual inventory system. Prepare the journal entry to record any inventory write down required.

Question

Benjaha Company is preparing the annual financial statements dated December 31, 2015. Information about inventory stocked for regular sale follows:  Instructions 
a. Calculate the correct value for the December 31, 2015 ending inventory using the lower of cost and net realizable value.
b. Assume Benjaha uses a perpetual inventory system. Prepare the journal entry to record any inventory write down required.

Quizplus · Accepted Answer

The Answer of Benjaha Company is preparing the annual financial statements dated December 31, 2015. Information about inventory stocked for regular sale follows:  Instructions 
a. Calculate the correct value for the December 31, 2015 ending inventory using the lower of cost and net realizable value.
b. Assume Benjaha uses a perpetual inventory system. Prepare the journal entry to record any inventory write down required.

Benjaha Company Is Preparing the Annual Financial Statements Dated December