Company A has 100 pieces of goods in stock, and the cost of each commodity is 100,000 yuan, of which 60 commodities have signed a contract, and the contract price is 120,000 yuan per piece, and the sales tax of each item is expected to be 150,000 yuan;The market** for this item is $10 per item50,000 yuan, the sales tax of each commodity is expected to be 10,000 yuan, assuming that the balance of the inventory decline reserve account at the beginning of the inventory is 130,000 yuan, without considering other influencing factors.
Calculate the amount of inventory decline provision accrued at the end of the period of company A, and prepare the accounting entries for the provision for inventory decline at the end of the period.
Net realizable value of contracted inventories = (12-1.)5) 60 = 6.3 million yuan.
The cost of contracted inventory = 10 60 = 6 million yuan, not impaired.
Net realizable value of non-contractual inventories = (10.)5-1) 40 = 3.8 million yuan.
The cost of non-contract inventory = 10 40 = 4 million yuan, and the impairment is 200,000 yuan.
The amount of reserve for inventory decline at the end of the period should be 200,000 yuan, and the provision for inventory decline at the end of the period should be 70,000 yuan (20-13).
Debit: Asset impairment loss 7
Credit: Provision for decline in value of inventories 7
When calculating the provision for decline in value of inventory, the value of inventories cannot be determined by combining the part with the part with the part without a contract. Otherwise, the amount of the impairment of the inventory in the non-contracted (contingent) portion will be masked by the amount of appreciation in the contracted (or non-contractual) portion of the inventory.
On January 1, 2x21, the balance of Company A's inventory depreciation provision was zero. On December 31, 2x21, the cost of Company A's M commodities was 5 million yuan, the market selling price was 4.8 million yuan, the estimated sales expenses were 50,000 yuan, the cost of N raw materials specially used for the production of P finished products was 4 million yuan, the market selling price was 3.8 million yuan, and the P finished products were not impaired. Regardless of other factors, on December 31, 2x21, Company A's provision for the decline in price of inventory was 250,000 yuan.
M commodity is a direct ** product, its net realizable value = estimated selling price - estimated sales tax = 480-5 = 4.75 million yuan, M commodity cost is 5 million yuan, and the amount of accrued inventory price decline provision = 500-475 = 250,000 yuan;n raw materials are used in the production of p finished products, since p finished products are not impaired, n raw materials do not need to make provision for inventory price decline;The balance of the provision for the decline in the value of the inventory at the beginning of the period of Company A is zero, so the amount of the provision for the decline in value accrued on December 31, 2x21 is 250,000 yuan.