Question 1 Novak Company uses the LCNRV method, on an individual-item basis, in

Question

Question 1 Novak Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2017, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Item D Item E Item F Item G Item H Item I Estimated selling price Cost Cost to complete Selling costs $151 $139 $120 $113 $139 $113 45 38 101 38 23 101 95 38 13 101 32 13 63 38 13 25 Using the LCNRV rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2017, for each of the inventory items above. Item D Item E Item F Item G Item H Item I

Explanation / Answer

NRV

(Estimated selling price - cost to complete - selling costs)

Item

NRV

(Estimated selling price - cost to complete - selling costs)

cost D 100 (151-38-31) 95 E 78 (139-38-23) 101 F 75 (120-32-13) 101 G 44 (113-44-25) 101 H 88 (139-38-13) 63 I 50 (113-38-25) 45

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