Question
In: Accounting
The inventory of ABC Company on December 31, 2018 consists of the following items: Part Quantity...
The inventory of ABC Company on December 31, 2018 consists of the following items:
| Part | Quantity | cost per unit | net realizable value |
| A | 600 | 95 | 100 |
| B | 1000 | 60 | 52 |
| C | 500 | 80 | 76 |
| D | 200 | 170 | 180 |
| E | 400 | 205 | 208 |
| F | 300 | 240 | 235 |
(1) Determine the inventory as of December 31, 2018, by the LCNRV method, applying this method to each item.
(2) Determine the inventory by the LCNRV method, applying the method to the total of the inventory.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
The inventory of Sunland Company on December 31, 2020, consists of the following items. Part Quantity...
The inventory of Sunland Company on December 31, 2020, consists
of the following items.
Part
Quantity
Cost per Unit
Net Realizable Value
110
560
$119.00
$125.00
111
1,060
75.00
65.00
112
550
100.00
95.00
113
220
212.50
225.00
120
440
256.00
260.00
121
a
1,700
20.00
1.00
122
290
300.00
294.00
a Part No. 121 is obsolete and has a realizable value of
$1.00 each as scrap.
(a) Determine the inventory as of December 31,
2020, by the LCNRV method,...
The inventory of Waterway Company on December 31, 2020, consists of the following items. Part Quantity...
The inventory of Waterway Company on December 31, 2020, consists
of the following items.
Part
Quantity
Cost per Unit
Net Realizable Value
110
540
$130.00
$137.00
111
930
82.20
71.00
112
470
109.60
104.00
113
180
232.90
246.60
120
420
281.00
285.00
121
a
1,700
22.00
1.00
122
270
328.80
322.00
a Part No. 121 is obsolete and has a realizable value of
$1.00 each as scrap.
(a) Determine the inventory as of December 31,
2020, by the LCNRV method,...
The inventory of Blue Company on December 31, 2017, consists of the following items. Part Quantity...
The inventory of Blue Company on December 31, 2017, consists of
the following items. Part Quantity Cost per Unit Net Realizable
Value 110 640 $126 $133 111 1,100 80 69 112 450 106 101 113 190 226
239 120 410 273 277 121 a 1,700 21 1 122 320 319 313 a Part No. 121
is obsolete and has a realizable value of $1 each as scrap. (a)
Determine the inventory as of December 31, 2017, by the LCNRV
method,...
he inventory of Sandhill Company on December 31, 2020, consists of the following items. Part Quantity...
he inventory of Sandhill Company on December 31, 2020, consists
of the following items.
Part
Quantity
Cost per
unit
Net Realizable
Value
A419
4,600
$11
$19
A435
3,910
8
6
A545
9,292
7
11
A615
6,900
10
7
A721
10,120
9
10
A885
12,880
15
18
A999
a
8,464
6
1
a Part No. A999 is obsolete and has a realizable value
of $1 each as scrap.
(a) Determine the inventory as of December 31,
2020, by the LCNRV method,...
Blossom Corporation had the following items in inventory as at December 31, 2020: Item No. Quantity...
Blossom Corporation had the following items in inventory as at
December 31, 2020:
Item No.
Quantity
Unit
Cost
NRV
A1
140
$2.65
$4.45
B4
145
2.15
2.05
C2
105
2.45
10.85
D3
95
8.60
7.90
Assume that Blossom uses a perpetual inventory system, and that
none of the inventory items can be grouped together for accounting
purposes.
Prepare the year-end adjusting entry required to adjust to the
lower of cost or net realizable value on an item-by-item basis
using the...
Blossom Corporation had the following items in inventory as at December 31, 2020: Item No. Quantity...
Blossom Corporation had the following items in inventory as at
December 31, 2020:
Item No.
Quantity
Unit
Cost
NRV
A1
140
$2.65
$4.45
B4
145
2.15
2.05
C2
105
2.45
10.85
D3
95
8.60
7.90
Assume that Blossom uses a perpetual inventory system, and that
none of the inventory items can be grouped together for accounting
purposes.
Prepare the year-end adjusting entry required to adjust to the
lower of cost or net realizable value on an item-by-item basis
using the...
The inventory account of Cullumber Company at December 31, 2020, included the following items: Inventory Amount...
The inventory account of Cullumber Company at December 31, 2020,
included the following items:
Inventory Amount
Merchandise out on
consignment at sales price
(including markup of 40% on selling price)
$61000
Goods purchased, in transit
(shipped f.o.b. shipping point)
49000
Goods held on consignment by
Cullumber
63000
Goods out on approval (sales
price $31400, cost $26600)
31400
Based on the above information, the inventory account at December
31, 2020, should be reduced by
$141200.
$104400.
$92200.
$92400.
Rembrandt Paint Company had the following income statement items for the year ended December 31, 2018...
Rembrandt Paint Company had the following income statement items
for the year ended December 31, 2018 ($ in 000s): Net sales $
31,000 Cost of goods sold $ 17,000 Interest income 330 Selling and
administrative expenses 3,800 Interest expense 610 Restructuring
costs 2,100 In addition, during the year the company completed the
disposal of its plastics business and incurred a loss from
operations of $2.9 million and a gain on disposal of the
component’s assets of $4.6 million. 600,000 shares...
Rembrandt Paint Company had the following income statement items for the year ended December 31, 2018...
Rembrandt Paint Company had the following income statement items
for the year ended December 31, 2018 ($ in 000s):
Net sales
$
33,000
Cost of goods sold
$
18,000
Interest income
350
Selling and administrative
expenses
4,000
Interest expense
650
Restructuring costs
2,300
In addition, during the year the company completed the disposal of
its plastics business and incurred a loss from operations of $3.1
million and a gain on disposal of the component’s assets of $5.0
million. 600,000...
Rembrandt Paint Company had the following income statement items for the year ended December 31, 2018...
Rembrandt Paint Company had the following income statement items
for the year ended December 31, 2018 ($ in 000s): Net sales $
27,000 Cost of goods sold $ 15,000 Interest income 290 Selling and
administrative expenses 3,400 Interest expense 530 Restructuring
costs 1,700 In addition, during the year the company completed the
disposal of its plastics business and incurred a loss from
operations of $2.5 million and a gain on disposal of the
component’s assets of $3.8 million. 600,000 shares...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- An investor is considering purchasing a Treasury bond with a 20 year maturity, an 8% coupon...
- Write a program that copies the contents of one file to a destination file. This program...
- how to conduct a marketing mix for 3d crest white strips
- Is big data analytics used for service innovation at Amazon? If so, please write a brief...
- A shrink-fit process has been used to enhance the pressure carrying capacity of a cylinder. During...
- Ten-year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000 and...
- The Blossom Department of Transportation has issued 25-year bonds that make semiannual coupon payments at a...
ADVERTISEMENT