Question
In: Accounting
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 |
Net Realizable |
||||||
|---|---|---|---|---|---|---|---|---|---|
| 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a Part No. A999 is obsolete and has a realizable value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, applying this method to each
item.
| Inventory as of December 31, 2020 | $enter the dollar amount of inventory at December 31, 2017 |
(b) Determine the inventory by the LCNRV method,
applying the method to the total of the inventory.
| Inventory as of December 31, 2020 | $enter the dollar amount of inventory at December 31, 2017 |
Solutions
Expert Solution
Answer-a)- The inventory as of December 31, 2020, by the LCNRV method, applying this method to each item = $480148.
Explanation-
| SANDHILL COMPANY | ||||||
| Calculation of closing inventory as of December31, 2020 for each item | ||||||
| By using Lower of cost or Net Realizable Vaue Method | Closing Inventory | |||||
| Part | Quantity (a) | Cost per unit | Net Reliazable value | Valued on | $ Per unit (b) | Amount $ (C=a*b) |
| $ | $ | |||||
| A419 | 4600 | 11 | 19 | Cost | 11 | 50600 |
| A435 | 3910 | 8 | 6 | Net Realizable value | 6 | 23460 |
| A545 | 9292 | 7 | 11 | Cost | 7 | 65044 |
| A615 | 6900 | 10 | 7 | Net Realizable value | 7 | 48300 |
| A721 | 10120 | 9 | 10 | Cost | 9 | 91080 |
| A885 | 12880 | 15 | 18 | Cost | 15 | 193200 |
| A999a | 8464 | 6 | 1 | Net Realizable value | 1 | 8464 |
| Total | 480148 |
b)- The inventory by the LCNRV method, applying the method to the total of the inventory = $490294.
Explanation-
| SANDHILL COMPANY | |||||
| Calculation of closing inventory as of December31, 2020 to total of the Inventory | |||||
| By using Lower of cost or Net Realizable Vaue Method | |||||
| Part | Quantity (a) | Cost per unit (b) | Net Reliazable value (c) | Total cost( d=a*b) | Total NRV (e=a*c) |
| $ | $ | ||||
| A419 | 4600 | 11 | 19 | 50600 | 87400 |
| A435 | 3910 | 8 | 6 | 31280 | 23460 |
| A545 | 9292 | 7 | 11 | 65044 | 102212 |
| A615 | 6900 | 10 | 7 | 69000 | 48300 |
| A721 | 10120 | 9 | 10 | 91080 | 101200 |
| A885 | 12880 | 15 | 18 | 193200 | 231840 |
| A999a | 8464 | 6 | 1 | 50784 | 8464 |
| Totals | 530025 | 490294 |
ekkarill92 answered 2 years 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 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 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,...
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.
Question 1 Sandhill Company has the following securities in its portfolio on December 31, 2020. None...
Question 1
Sandhill Company has the following securities in its portfolio
on December 31, 2020. None of these investments are accounted for
under the equity method.
Investments
Cost
Fair Value
1,500 shares of Gordon, Inc., Common
$75,700
$71,000
5,000 shares of Wallace Corp., Common
185,100
180,200
400 shares of Martin, Inc., Preferred
61,900
63,700
$322,700
$314,900
All of the securities were purchased in 2020.
In 2021, Sandhill completed the following securities
transactions.
March 1
Sold the 1,500 shares of Gordon,...
Assume that in an annual audit of Sandhill Inc. at December 31, 2020, you find the...
Assume that in an annual audit of Sandhill Inc. at December 31,
2020, you find the following transactions near the closing date.
Assuming that each of the amounts is material, state whether the
merchandise should be included in the client’s inventory.
Transactions 1. A special machine, fabricated to order for a
customer, was finished and specifically segregated in the back part
of the shipping room on December 31, 2020. The customer was billed
on that date and the machine excluded...
These items are taken from the financial statements of Sandhill Co. at December 31, 2022. Buildings...
These items are taken from the financial statements of Sandhill
Co. at December 31, 2022.
Buildings
$126,960
Accounts receivable
15,120
Prepaid insurance
3,840
Cash
14,208
Equipment
98,880
Land
73,440
Insurance expense
936
Depreciation expense
6,360
Interest expense
3,120
Common stock
72,000
Retained earnings (January 1, 2022)
48,000
Accumulated depreciation—buildings
54,720
Accounts payable
11,400
Notes payable
112,320
Accumulated depreciation—equipment
22,464
Interest payable
4,320
Service revenue
17,640
Prepare a classified balance sheet. Assume that $16,320 of the note
payable will be paid...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- What do you believe happens during the final scene of the story between the brothers at....
- A 5.171 g sample of a solid, weak, monoprotic acid is used to make a 100.0...
- 1. Creep is one of deformation that occurred in concrete structure. Give one example that can...
- Why does a particular codon represent only one specific amino acid?
- Write a function template sort that takes two references to generic objects and switches them if...
- What 2 things happen to the melting point of a solid when an impurity is present?
- How Can Hominin Evolution be characterized as " mosaic evolution" Use examples of species from the...
ADVERTISEMENT