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Allegro Music sells musical equipment

Accounting

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Allegro Music sells musical equipment. A detailed list of Allegro Music's inventory

follows:

Inventory item

Number

of units —

year end

Cost per

unit Total cost

NRV* per

unit Total NRV LCNRV**

Chime set 3 $ 750 $ 2,250 $ 790 $ 2,370

Cymbals 4 70 280 85 340

Drum sets 3 450 1,350 525 1,575

Flutes 5 650 3,250 775 3,875

Violins 3 1,500 4,500 1,650 4,950

Guitars 7 62 434 45 315

Guitars — acoustic 9 125 1,125 132 1,188

Guitars — electric 12 190 2,280 225 2,700

Keyboards 4 2,200 8,800 2,100 8,400

Pianos — entry 3 2,300 6,900 2,500 7,500

Pianos — introductory 5 4,500 22,500 4,900 24,500

Pianos — intermediate 2 12,000 24,000 14,200 28,400

Pianos — professional 1 22,500 22,500 25,000 25,000

Pianos — upright 2 5,000 10,000 7,500 15,000

Recorders 25 7 175 10 250

Saxophones 3 575 1,725 675 2,025

Triangles 5 55 275 65 325

Xylophones 4 245 980 300 1,200

$113,324 $129,913

*NRV = net realizable value

**LCNRV = lower of cost and net realizable value

Required:

Complete the schedule above and prepare the year-end adjusting entry to record the

inventory at the lower of cost and net realizable value.

 

I would like to ask to make a detailed journal entries for this question if possible with explanation.

Thank you