Question 1 The inventory of Shamrock Company on December 31, 2017, consists of t
ID: 2562289 • Letter: Q
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Question 1 The inventory of Shamrock Company on December 31, 2017, consists of the following items Part Quantity 110 Cost per Unit Net Realizable Value $147 76 112 265 306 $140 112 113 120 121a 122 650 990 530 180 390 1,500 270 118 250 301 24 353 345 a Part No. 121 is obsolete and has a realizable value of $1 each as scrap (a) Determine the inventory as of December 31, 2017, by the LCNRV method, applying this method to each item Inventory as of December 31, 2017 (b) Determine the inventory by the LCNRV method, applying the method to the total of the inventory Inventory as of December 31, 2017Explanation / Answer
(a)
(b)
(c) = (a)*(b)
(d)
(e) = (d)*(a)
(f)
Quantity
Cost per Unit
Total Cost
NRV
Total NRV
LCNRV
110
650
140
91000
147
95550
91000
111
990
88
87120
76
75240
75240
112
530
118
62540
112
59360
59360
113
180
250
45000
265
47700
45000
120
390
301
117390
306
119340
117390
121
1500
24
36000
1
1500
1500
122
270
353
95310
345
93150
93150
534360
491840
482640
Answer to Part 1:
Inventory as on December 31, 2017 = $ 482640
Answer to Part 2:
Inventory as on December 31, 2017 = $ 491840
(a)
(b)
(c) = (a)*(b)
(d)
(e) = (d)*(a)
(f)
Quantity
Cost per Unit
Total Cost
NRV
Total NRV
LCNRV
110
650
140
91000
147
95550
91000
111
990
88
87120
76
75240
75240
112
530
118
62540
112
59360
59360
113
180
250
45000
265
47700
45000
120
390
301
117390
306
119340
117390
121
1500
24
36000
1
1500
1500
122
270
353
95310
345
93150
93150
534360
491840
482640
Answer to Part 1:
Inventory as on December 31, 2017 = $ 482640
Answer to Part 2:
Inventory as on December 31, 2017 = $ 491840
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