The inventory of Oheto Company on December 31, 2020, consists of the following items. Part Quantity Cost per Unit Net Realizable Value 110 600 $95.00
The inventory of Oheto Company on December 31, 2020, consists of the following items. Part Quantity Cost per Unit Net Realizable Value 110 600 $95.00
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 8MC: At December 31, 2019, the following information was available from Crisford Companys books: Sales...
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The inventory of Oheto Company on December 31, 2020, consists of the following items.
Part
|
Quantity
|
Cost per Unit
|
Net Realizable Value
|
||||
---|---|---|---|---|---|---|---|
110
|
600 | $95.00 | $100.00 | ||||
111
|
1,000 | 60.00 | 52.00 | ||||
112
|
500 | 80 | 76.00 | ||||
113
|
200 | 170 | 180.00 | ||||
120
|
400 | 205.00 | 208.00 | ||||
121
|
1,600 | 16.00 | 1.00 | ||||
122
|
300 | 240 | 235.00 |
a Part No. 121 is obsolete and has a realizable value of $1.00 each as scrap.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, applying this method to each item.
Inventory as of December 31, 2020 |
$
|
(b) Determine the inventory by the LCNRV method, applying the method to the total of the inventory.
Inventory as of December 31, 2020 |
$
|
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