ENT RESOURCES opy of Chapter Exercise 9-1 Your answer is incorrect. Try again. T

Question

ENT RESOURCES opy of Chapter Exercise 9-1 Your answer is incorrect. Try again. The inventory of 3T Company on December 31, 2014, consists of the following items. 110 $113 $125 1,090 520 112 100 213 225 121a 1,700 20 18 Results by Study Part No. 121 is obsolete and has a realizable value of $0.63 each as scrap. (a) Determine the inventory as of December 31, 2014, by the lower-of-cost-or-market method, applying this method directly to each itern. Inventory as of December 31, 2013 (b) Determine the inventory by the lower-of-cost-or-market method, applying the method to the total of the inventory, Inventory as of December 31, 2013 T Click if you would like to Show Work for this question: 534760 541320

Explanation / Answer

SOLUTION

(a) Inventory value based on LCNRV - each item: $522,080

(b) Inventory value based on LCNRV - total inventory: $534,760

Part No. Quantity (A) Cost per unit (B) Net Realizable Value per unit (C) Total Cost ($) (A*B) Total NRV ($)(A*C) Lower of Cost or NRV ($) 110 610 113 125 68,930 76,250 68,930 111 1,090 75 65 81,750 70,850 70,850 112 520 100 95 52,000 49,400 49,400 113 280 213 225 59,640 63,000 59,640 120 500 256 260 128,000 130,000 128,000 121 1,700 20 18 34,000 30,600 30,600 122 390 300 294 117,000 114,660 114,660 541,320 534,760 522,080

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