Question
In: Accounting
The following information concerns several of the inventory items at DC’s: Description Quantity Unit Cost Net...
The following information concerns several of the inventory items at DC’s:
| Description | Quantity | Unit Cost | Net Realizable Value | ||||||
| Department A: | |||||||||
| Model DC 225 | 74 | $ | 18.60 | $ | 17.50 | ||||
| Model DC 364 | 99 | 30.45 | 26.60 | ||||||
| Model DC 513 | 84 | 29.70 | 28.20 | ||||||
| Department B: | |||||||||
| Model AR 137 | 47 | 60.70 | 61.70 | ||||||
| Model AR 226 | 59 | 98.70 | 96.65 | ||||||
| Model AR 196 | 48 | 126.70 | 124.60 | ||||||
- Determine the amount of inventory to be reported on the financial statements using the lower of cost or net realizable value method of valuation under lower of cost or net realizable value for each item separately.
- Determine the amount of inventory to be reported on the financial statements using the lower of cost or net realizable value method of valuation under lower of total cost or total net realizable value.
- Determine the amount of inventory to be reported on the financial statements using the lower of cost or net realizable value method of valuation under lower of total cost or total net realizable value by department.
(Do not round your intermediate calculations. Round your answers to 2 decimal places.)
Solutions
Expert Solution
Correct Answer:
|
A |
B |
C =MIN(A,B) |
D |
E=C*D |
|
|
Description |
Cost per unit |
Net Realizable Value |
Lower of Cost or NRV |
Quantity |
Total Amount of Inventory |
|
Department A: |
$ - |
||||
|
Model DC 225 |
$ 18.60 |
$ 17.50 |
$ 17.50 |
74 |
$ 1,295.00 |
|
Model DC 364 |
$ 30.45 |
$ 30.45 |
$ 30.45 |
99 |
$ 3,014.55 |
|
Model DC513 |
$ 29.70 |
$ 29.70 |
$ 29.70 |
84 |
$ 2,494.80 |
|
Department B: |
$ - |
||||
|
Model AR 137 |
$ 60.70 |
$ 61.70 |
$ 60.70 |
47 |
$ 2,852.90 |
|
Model AR 226 |
$ 98.70 |
$ 98.70 |
$ 98.70 |
59 |
$ 5,823.30 |
|
Model AR196 |
$ 126.70 |
$ 126.60 |
$ 126.60 |
48 |
$ 6,076.80 |
End of Answer.
Thanks
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