Question

Coronado 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		$133			$122			$105			$100			$122			$100
Cost		83			89			89			89			56			40
Cost to complete		33			33			28			39			33			33
Selling costs		11			20			11			22			11			22

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			$

Answer 1

NRV = Estimated selling price - Cost to complete - Selling costs

D 83 or (133-33-11)	83
E 89 or (122-33-20)	69
F 89 or (105-28-11)	66
G 89 or (100-39-22)	39
H 56 or (122-33-11)	56
I 40 or (100-33-22)	40

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