Company B has 1,000 pieces of material A in stock, and the cost of each material is 100,000 yuan, and material A is specially used for the production of product A, and each material is processed into a finished product A after an additional cost of 20,000 yuan. 400 pieces of A products have signed contracts, the contract price of each A product is 130,000 yuan, and the sales tax of a single piece is expected to be 20,000 yuan;The market price of a single piece of A product is 150,000 yuan, and the sales tax of a single piece is expected to be 250,000 yuan. It is assumed that the balance of the reserve account for the decline in the price of the opening inventory of the batch of raw materials is 5 million yuan, and other influencing factors are not considered.
Calculate the amount of inventory decline provision accrued at the end of the period of Company B, and prepare the accounting entries for the provision for inventory decline at the end of the period.
The cost of finished products with contracts = (10 + 2) 400 = 48 million yuan, net realizable value = (13-2) 400 = 44 million yuan, and some products with contracts are impaired, so the raw materials used to produce contract products are impaired.
The net realizable value of the contracted part of material A = (13-2-2) 400 = 36 million yuan, and its cost = 10 400 = 40 million yuan, with an impairment of 4 million yuan;
The cost of finished products without a contract = (10 + 2) 600 = 72 million yuan, net realizable value = (15-2.)5) 600 = 75 million yuan, the finished product has not been impaired, the raw materials are measured at cost, and there is no need to make provision for inventory price decline.
The opening credit balance of the inventory decline provision is 5 million yuan, the closing credit balance is 4 million yuan, and the current period should be reversed to the inventory decline reserve of 1 million yuan.
Borrow: Inventory decline provision 100
Credit: Asset impairment loss 100