Hougton Company Follows U

question 112

Essay

Hougton Company follows U.S.GAAP and has the following inventory data available:
The company has 1,000 shirts of each style in stock at year end.The company uses the indirect method to record the lower-of-cost-or-market rule.
Required:
1.a.Determine the value of inventory reported on the balance sheet at year end if the lower-of-cost-or-market rule is applied to each inventory item.
b.Prepare the journal entry required at year end.
2.a.Determine the value of inventory reported on the balance sheet at year end if the lower-of-cost-or-market rule is applied to the shirts as a group of items.Use gender to group the items.
b.Prepare the journal entry required at year end.

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Definitions:

Authoritative

A parenting style characterized by high demands and high responsiveness, where parents set clear standards for their children but also encourage independence and are open to communication.

Permissive

A parenting style characterized by low demands with high responsiveness, where parents are lenient and may only step in when necessary.

Influenced

Being influenced refers to having one's behavior, actions, or thoughts altered or directed by forces or opinions outside of oneself.

Authoritative Parents

A parenting style characterized by high responsiveness and high demands, balancing clear, strict guidelines with emotional support and recognition of independence.