The following data is available for the month of September for two items of inventory that might soon be render obsolete for Island Solutions. Inventory balances at September 1, 2023, were as follows: USB-C(TA3)HUB Date Purchases Sales Sept 5 500 @ $450 10 500 @ $540 15 400 @ $475 20 400 @ $570 25 300 @ $500
The following data is available for the month of September for two items of inventory that might soon be render obsolete for Island Solutions. Inventory balances at September 1, 2023, were as follows:
|
USB-C(TA3)HUB |
||
| Date | Purchases | Sales |
| Sept 5 | 500 @ $450 | |
| 10 | 500 @ $540 | |
| 15 | 400 @ $475 | |
| 20 | 400 @ $570 | |
| 25 | 300 @ $500 |
|
USB-C(TB3) HUB |
||
| Date | Purchases | Sales |
| Sept 10 | 600 @ $900 | |
| 19 | 300 @ $950 | |
| 25 | 900 @ $1,080 | |
| 28 | 500 @ $1,000 | |
| 30 | 600 @ $1,140 |
In addition to the inventory data provided above, Island Solutions accountant has made the following projections in light of the market changes.
| USB-C(TA3)HUB | USB-C(TB3)HUB | |
| Expected unit selling price (net of cost to sell) | $580 | $1,050 |
| Costs to complete | 30 | 150 |
1. Assume that Island Solutions applies LCNRV at the individual product level, determine the value of inventory that should be reported on the
2. Assume Island Solutions applies LCNRV at the major group level and for this purpose places TA3 and TB3 Hubs in one major group, determine the value of inventory that should be reported on the statement of financial position on September 30, 2023.
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