Question

Exercise 9-02 Concord Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2020, 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 H Item I $95 $127 $101 80 85 Estimated selling price Cost Cost to complete Selling costs 38 Item G $95 85 37 21 $117 85 32 19 $117 53 32 11 27 32 11 32 21 11 Using the LCNRV rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2020, for each of the inventory items above. Item D " Item E " Item F 1 Item G o Item H I " Item I "

Answer 1

Solution

Item D	$    80.00
Item E	$    66.00
Item F	$    63.00
Item G	$    37.00
Item H	$    53.00
Item I	$    38.00

Working

	Item D	Item E	Item F	Item G	Item H	Item I
Selling price (A)	$ 127.00	$ 117.00	$ 101.00	$    95.00	$ 117.00	$    95.00
Cost to complete (B)	$    32.00	$    32.00	$    27.00	$    37.00	$    32.00	$    32.00
Selling cost (C )	$    11.00	$    19.00	$    11.00	$    21.00	$    11.00	$    21.00
Net realizable value [A-(B+C)]	$    84.00	$    66.00	$    63.00	$    37.00	$    74.00	$    42.00
Cost (D)	$    80.00	$    85.00	$    85.00	$    85.00	$    53.00	$    38.00
Lower of cost of NRV	$    80.00	$    66.00	$    63.00	$    37.00	$    53.00	$    38.00