Almaden Hardware Store sells two distinct types of products, tools and paint pro

Question

Almaden Hardware Store sells two distinct types of products, tools and paint products. Information pertaining to its 2016 year-end inventory is as follows Per Unit Inventory by Product Type Quantity Cost Tools Net Realizable Value Hammers Saws Screwdrivers 120 $5.80 280 380 10.80 2.80 $6.30 9.80 3.40 Paint products 1-gallon cans Paint brushes 580 120 6.80 4.80 5.80 5.30 Required 1. Determine the book value of inventory at year-end, assuming the lower of cost and net realizable value rule is applied to (a) individual products, (b) product type, and (c) total inventory Net Realizable Value By Individual Products Lower of cost and NRV By Product Type By Total Product Cost Inventory Tools Hammers Saws Screwdrivers Total tools Paint products 1-gallon cans Paint brushes Total paint Total

Explanation / Answer

Lower of Cost and NRV Net Realisable By Individual By Product By Total Product Cost Value Products Type Inventory Tools: Hammers 696 756 696 Saws 3024 2744 2,744 Screwdrivers 1064 1292 1,064 Total Tools 4784 4792 4,784 Paint Product: 1 Gallon cans 3944 3364 3364 Paint brushes 576 636 576 Total Paint 4520 4,000 4,000 Total    9304 8792 8444 8,784 8792 Req 2: Amount of loss a. Individual product 860 (Cost-Inventory valuation b. Product Type 520 c. Total inventory 512

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