Novelli's Nursery has developed the following data in order to calculate the lower of cost or net realizable value for its products. The individual products are listed within the categories of trees. Broad leaf trees: Ash Beech Needle leaf trees: Cedar Fir Fruit trees: Selling Price Product Ash Beech Cedar Fir Apple Cherry Inventory value $ 1,610 2,770 Apple Cherry The costs to sell are 10% of selling price. $ 3,260 3,100 Cost $ 2,180 2,870 Cost Required: Determine the reported inventory value assuming the lower of cost or net realizable value rule is applied to individual trees. NRV $ 1,520 1,420 $ 1,570 3,170 $ 1,220 1,620 Lower of Cost or NRV 4

Novelli's Nursery has developed the following data in order to calculate the lower of cost or net realizable value for its products. The individual products are listed within the categories of trees. Broad leaf trees: Ash Beech Needle leaf trees: Cedar Fir Fruit trees: Selling Price Product Ash Beech Cedar Fir Apple Cherry Inventory value $ 1,610 2,770 Apple Cherry The costs to sell are 10% of selling price. $ 3,260 3,100 Cost $ 2,180 2,870 Cost Required: Determine the reported inventory value assuming the lower of cost or net realizable value rule is applied to individual trees. NRV $ 1,520 1,420 $ 1,570 3,170 $ 1,220 1,620 Lower of Cost or NRV 4

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 22E: Total cost method of product pricing Based on the data presented in Exercise 17, assume that Smart...

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12. Novelli's Nursery has developed the following data in order to calculate the lower of cost or net realizable value for its products. The individual products are listed within the categories of trees. SellingPrice Cost Broad leaf trees: Ash $ 1,980 $ 1,880 Beech 2,470 1,780 Needle leaf trees: Cedar $ 2,860 $ 1,930 Fir 4,050 3,530 Fruit trees: Apple $ 1,980 $ 1,580 Cherry 2,570 1,980
Novelli's Nursery has developed the following data in order to calculate the lower of cost or net realizable value for its products. The individual products are listed within the categories of trees. SellingPrice Cost Broad leaf trees: Ash $ 1,860 $ 1,760 Beech 2,290 1,660 Needle leaf trees: Cedar $ 2,620 $ 1,810 Fir 3,450 3,410 Fruit trees: Apple $ 1,860 $ 1,460 Cherry 2,390 1,860 The costs to sell are 10% of selling price. Required:Determine the reported inventory value assuming the lower of cost or net realizable value rule is applied to individual trees. Product Cost NRV Lower of Cost or NRV Ash Beech Cedar Fir Apple Cherry Inventory value
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