Question
In: Accounting
Consider the following information pertaining to OldWest's inventory: Product Quantity Cost Net Realizable Value Revolvers...
Consider the following information pertaining to OldWest's inventory:
| Product | Quantity | Cost | Net Realizable Value | ||||||
| Revolvers | 17 | $ | 124 | $ | 159 | ||||
| Spurs | 28 | 25 | 20 | ||||||
| Hats | 11 | 54 | 44 | ||||||
-
$3,152.
-
$3,402.
-
$3,244.
-
$3,747.
At what amount should OldWest report its inventory?
Solutions
Expert Solution
| Product line | Quantity (a) | Unit cost (b) | Total Cost (a x b) | Net Realizable value | LC&NRV per item (d) | Total LC&NRV (a x d) |
| Revolvers | 17 | 124 | 2,108 | 159 | 124 | 2,108 |
| Spurs | 28 | 25 | 700 | 20 | 20 | 560 |
| Hats | 11 | 54 | 594 | 44 | 44 | 484 |
| Total | $3,402 | $3,152 |
OldWest should report its inventory at = $3,152
First option is correct.
Kindly comment if you need further assistance. Thanks
ekkarill92 answered 2 years agoRelated Solutions
A company reports inventory using the lower-of-cost and net realizable value. Below is information related to...
A company reports inventory using the lower-of-cost and net
realizable value. Below is information related to its year-end
inventory:
Inventory
Quantity
Cost
NRV
Unit A
10
$30
$32
Unit B
18
43
40
Unit C
12
23
27
Unit D
15
18
17
a. Calculate ending inventory under the
lower-of-cost and net realizable value.
b. Prepare the necessary adjusting entry to
inventory. (If no entry is required for a
transaction/event, select...
Item Inventory Quantity Cost per Unit Market Value per Unit (Net Realizable Value) A13Y 80 $26...
Item
Inventory
Quantity
Cost per
Unit
Market Value per Unit
(Net Realizable Value)
A13Y
80
$26
$31
O5T4
162
14
11
Determine the value of the inventory at the lower of cost or
market by applying lower of cost or market to each inventory item,
as shown in Exhibit 9.
$
A company reports inventory using the lower of cost and net realizable value. See the following...
A company reports inventory using the lower of cost and net
realizable value. See the following information related to its
year-end inventory:
Inventory
Quantity
Cost
NRV
Item A
150
$
29
$
34
Item B
50
34
24
a. Calculate ending inventory for the company
under the lower of cost and net realizable value.
b. Record the necessary adjusting entry to
inventory.
Determining Lower of Cost or Net Realizable Value (NRV) Crane Company had the following inventory at...
Determining Lower of Cost or Net Realizable Value
(NRV)
Crane Company had the following inventory at December 31,
2017.
Unit Price
Quantity
Cost
NRV
Desks
Model 9001
70
$190
$210
Model 9002
45
280
268
Model 9003
20
350
360
Cabinets
Model 7001
120
60
64
Model 7002
80
95
88
Model 7003
50
130
126
a. Determine the ending inventory amount by applying the net
realizable value rule to:
1. Each item of inventory.
$Answer
2. Each major category...
Determining Lower of Cost or Net Realizable Value (NRV) Crane Company had the following inventory at...
Determining Lower of Cost or Net Realizable Value
(NRV)
Crane Company had the following inventory at December 31,
2017.
Unit Price
Quantity
Cost
NRV
Desks
Model 9001
70
$190
$210
Model 9002
45
280
268
Model 9003
20
350
360
Cabinets
Model 7001
120
60
64
Model 7002
80
95
88
Model 7003
50
130
126
a. Determine the ending inventory amount by applying the net
realizable value rule to:
1. Each item of inventory.
$Answer
2. Each major category...
Determining Lower of Cost or Net Realizable Value (NRV) Crane Company had the following inventory at...
Determining Lower of Cost or Net Realizable
Value (NRV)
Crane Company had the following inventory at December 31,
2017.
Unit Price
Quantity
Cost
NRV
Desks
Model 9001
74
$190
$210
Model 9002
49
280
268
Model 9003
24
350
360
Cabinets
Model 7001
124
60
64
Model 7002
84
95
88
Model 7003
54
130
126
a. Determine the ending inventory amount by applying the net
realizable value rule to:
1. Each item of inventory.
$Answer
2. Each major category...
PER UNIT Inventory Quantity Cost Net Realizable Value(NRV) Class 1 Snowman A 50 100 120 Snowman...
PER UNIT
Inventory
Quantity
Cost
Net Realizable Value(NRV)
Class 1
Snowman A
50
100
120
Snowman B
30
150
140
Class 2
Sleigh A
120
90
100
Sleigh B
60
130
140
Sleigh C
40
200
150
Develop a table below to compute the amount of
any adjustment that is required to inventory by individual type of
item and by the class of inventory. Provide the journal entry for
the adjustment first by the individual amount (direct method) and
then...
Home furnishings reports inventory using the lower of cost and net realizable value (NRV).
Home furnishings reports inventory using the lower of cost and net realizable value (NRV). Below is information related to its year-end inventory.
Required:
1. Calculate the total recorded cost of ending inventory before any adjustments.
2. Calculate ending inventory using the lower of cost and net realizable value.
3. Record any necessary adjustment to inventory.
4. Explain the impact of the adjustment in the financial statements.
Tamarisk, Inc. uses the lower-of-cost-or-net realizable value basis for its inventory. The following data are available...
Tamarisk, Inc. uses the lower-of-cost-or-net realizable value
basis for its inventory. The following data are available at
December 31.
Item
Units
Unit Cost
Net Realizable Value
Cameras:
Minolta
3
$180
$156
Canon
9
149
175
Light meters:
Vivitar
14
136
114
Kodak
20
117
130
Determine the amount of the ending inventory by applying the
lower-of-cost-or-net realizable value basis.
The ending inventory
Janis Company correctly applies the Lower of Cost or Net Realizable Value procedure to its inventory...
Janis Company correctly applies the Lower of Cost or Net
Realizable Value procedure to its inventory on a per-unit
basis.
Information for Janis' seven products at the end of 2020 is as
follows:
Product
Quantity
Cost per unit
Selling Price
Cost to complete for sale
A
900
5.10
7.25
1.90
B
1200
4.30
5.40
1.20
C
800
7.20
8.00
0.70
D
1000
5.75
6.20
0.55
E
700
3.60
5.20
0.80
F
800
4.80
6.25
1.10
G
900
2.90
4.00
1.45...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- UNIX ONLY -- DIFFICULT LAB ASSIGNMENT This is an extremely difficult subject for me. Could you...
- Do you know why your credit card can be refused even though you are profitable?
- The Following Java expression: S/10 * 10 + 10 – S = C Show that this...
- Year Cash Flow 0 −$9,700 1 5,800 2 2,500 3 3,400 &nb
- In a two – story building, an exterior column is to be designed for a service...
- Explain the use of neural networking modeling in predictive analytics. Discuss a real-life example of where...
- Boarder line and antisocial disorder are perhaps the most research personality disorder.What are the most common...
ADVERTISEMENT