Question

In: Accounting

Ayayai Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The...

Ayayai Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2017, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Item D Item E Item F Item G Item H Item I Estimated selling price $128 $118 $102 $96 $118 $96 Cost 80 86 86 86 54 39 Cost to complete 32 32 27 37 32 32 Selling costs 11 19 11 21 11 21 Using the LCNRV rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2017, for each of the inventory items above. Item D $ Item E $ Item F $ Item G $ Item H $ Item I $

Solutions

Expert Solution

Solution

Inventory Value
Item D $    80.00
Item E $    67.00
Item F $    64.00
Item G $    38.00
Item H $    54.00
Item I $    39.00

Working

Item D Item E Item F Item G Item H Item I
Selling price (A) $ 128.00 $ 118.00 $ 102.00 $    96.00 $ 118.00 $    96.00
Cost to complete (B) $    32.00 $    32.00 $    27.00 $    37.00 $    32.00 $    32.00
Selling cost (C ) $    11.00 $    19.00 $    11.00 $    21.00 $    11.00 $    21.00
Net realizable value [A-(B+C)] $    85.00 $    67.00 $    64.00 $    38.00 $    75.00 $    43.00
Cost (D) $    80.00 $    86.00 $    86.00 $    86.00 $    54.00 $    39.00
Lower of cost of NRV $    80.00 $    67.00 $    64.00 $    38.00 $    54.00 $    39.00

Related Solutions

Sheridan Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The...
Sheridan Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2020, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Item D Item E Item F Item G Item H Item I Estimated selling price $130 $119 $103 $97 $119 $97 Cost 81 86 86 86 54 39 Cost to complete 32 32 27 38 32 32 Selling costs 11...
Flint Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The...
Flint Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2017, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Item D Item E Item F Item G Item H Item I Estimated selling price $126 $116 $100 $95 $116 $95 Cost 79 84 84 84 53 38 Cost to complete 32 32 26 37 32 32 Selling costs 11...
Question 3 Wolfe Company uses the LCNRV method, on an individual-item basis, in pricing its inventory...
Question 3 Wolfe Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2020, consists of products D, E, F, G, H, and I. Relevant per-unit data for these products appear below. Item Item Item Item Item Item    D    E    F    G    H     I Estimated selling price $240 $220 $190 $180 $220 $180 Cost 150 160 160 160 100 72 Replacement cost 240 144 140 60 140 60 Estimated selling expense...
Blue Company follows the practice of pricing its inventory at LCNRV, on an individual-item basis. Item...
Blue Company follows the practice of pricing its inventory at LCNRV, on an individual-item basis. Item No. Quantity Cost per Unit Estimated Selling Price Cost to Complete and Sell 1320 1,800 $3.90 $5.49 $1.95 1333 1,500 3.29 4.15 1.22 1426 1,400 5.49 6.10 1.71 1437 1,600 4.39 3.90 1.65 1510 1,300 2.75 3.97 1.71 1522 1,100 3.66 4.76 0.98 1573 3,600 2.20 3.05 1.46 1626 1,600 5.73 7.32 1.83 From the information above, determine the amount of Blue Company inventory....
Larkspur Company follows the practice of pricing its inventory at LCNRV, on an individual-item basis. Item...
Larkspur Company follows the practice of pricing its inventory at LCNRV, on an individual-item basis. Item No. Quantity Cost per Unit Estimated Selling Price Cost to Complete and Sell 1320 1,300 $4.00 $5.63 $2.00 1333 1,000 3.38 4.25 1.25 1426 900 5.63 6.25 1.75 1437 1,100 4.50 4.00 1.69 1510 800 2.81 4.06 1.75 1522 600 3.75 4.88 1.00 1573 3,100 2.25 3.13 1.50 1626 1,100 5.88 7.50 1.88 From the information above, determine the amount of Larkspur Company inventory....
Affliction Company uses the lower-of-cost-or-market method, on an individual-item basis, in pricing its inventory items. The...
Affliction Company uses the lower-of-cost-or-market method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2014, consists of products D, E, F, G, H, and I. Relevant per-unit data for these products appear below. Using the lower-of-cost-or-market rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2014, for each of the inventory items below. Item D Item E Item F Item G Item H Item I Estimated selling price $130...
Norton Corporation uses the Lower-of-Cost-or-Market (LCM) method, on an individual-item basis, in pricing its inventory items....
Norton Corporation uses the Lower-of-Cost-or-Market (LCM) method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2020, consists of products G, H, I, J, K, L, M and N. Relevant per unit data for these products appear below. Required: Compute 1) Net Realizable Value (NRV), 2) NRV - normal profit (show your detail calculation), and use the LCM rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2020, for the...
Exercise 9-03 Skysong Company follows the practice of pricing its inventory at LCNRV, on an individual-item...
Exercise 9-03 Skysong Company follows the practice of pricing its inventory at LCNRV, on an individual-item basis. Item No. Quantity Cost per Unit Estimated Selling Price Cost to Complete and Sell 1320 1,800 $3.39 $4.77 $1.70 1333 1,500 2.86 3.60 1.06 1426 1,400 4.77 5.30 1.48 1437 1,600 3.82 3.39 1.43 1510 1,300 2.39 3.45 1.48 1522 1,100 3.18 4.13 0.85 1573 3,600 1.91 2.65 1.27 1626 1,600 4.98 6.36 1.59 From the information above, determine the amount of Skysong...
Exercise 9-03 Blue Company follows the practice of pricing its inventory at LCNRV, on an individual-item...
Exercise 9-03 Blue Company follows the practice of pricing its inventory at LCNRV, on an individual-item basis. Item No. Quantity Cost per Unit Estimated Selling Price Cost to Complete and Sell 1320 1,800 $3.90 $5.49 $1.95 1333 1,500 3.29 4.15 1.22 1426 1,400 5.49 6.10 1.71 1437 1,600 4.39 3.90 1.65 1510 1,300 2.75 3.97 1.71 1522 1,100 3.66 4.76 0.98 1573 3,600 2.20 3.05 1.46 1626 1,600 5.73 7.32 1.83 From the information above, determine the amount of Blue...
Blue Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis....
Blue Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Item No. Quantity Cost per Unit Cost to Replace Estimated Selling Price Cost of Completion and Disposal Normal Profit 1320 1,300 $3.23 $3.03 $4.55 $0.35 $1.26 1333 1,000 2.73 2.32 3.54 0.51 0.51 1426 900 4.55 3.74 5.05 0.40 1.01 1437 1,100 3.64 3.13 3.23 0.25 0.91 1510 800 2.27 2.02 3.28 0.81 0.61 1522 600 3.03 2.73 3.84 0.40 0.51 1573 3,100 1.82...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT