Presented below is information related to Bonita Inc.’s inventory. (per unit) Skis Boots Parkas Historical cost $275.50 $153.70 $76.85 Selling price 307.40 210.25 106.94 Cost to sell 27.55 11.60 3.63 Cost to complete 46.40 42.05 30.81 Determine the following: the net realizable value for each item, and the carrying value of each item under LCNRV.
Presented below is information related to Bonita Inc.’s inventory. (per unit) Skis Boots Parkas Historical cost $275.50 $153.70 $76.85 Selling price 307.40 210.25 106.94 Cost to sell 27.55 11.60 3.63 Cost to complete 46.40 42.05 30.81 Determine the following: the net realizable value for each item, and the carrying value of each item under LCNRV.
Corporate Financial Accounting
15th Edition
ISBN:9781337398169
Author:Carl Warren, Jeff Jones
Publisher:Carl Warren, Jeff Jones
Chapter6: Inventories
Section: Chapter Questions
Problem 7DQ: Using the following data, how should the inventory be valued under lower of cost or market? Original...
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Presented below is information related to Bonita Inc.’s inventory.
(per unit)
|
Skis
|
Boots
|
Parkas
|
|||
---|---|---|---|---|---|---|
Historical cost
|
$275.50
|
$153.70
|
$76.85
|
|||
Selling price
|
307.40
|
210.25
|
106.94
|
|||
Cost to sell
|
27.55
|
11.60
|
3.63
|
|||
Cost to complete
|
46.40
|
42.05
|
30.81
|
Determine the following: the net realizable value for each item, and the carrying value of each item under LCNRV.
Expert Solution
Step 1 Introduction
Net realizable value = Selling price - cost to sell - cost to complete.
The inventory should be valued at lower of cost or net realizable value.
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