Question

- ох FR Assignment 1 Presentation 2019-2020 - Microsoft Word Рецензирование Вид надстройки Разметка страницы Ссылки Рассылки Главная Вставка Bapesar Скопировать Вставить Фармат по образцу Буфер обмена = = - - FA1 | | | | Times New Roman - 12 - Ал | E жк чаb x x Aa - 2: А|| Шрифт Аавьссос Аавьссос Аавьс. Аавьсс АаВІ Аавьсс Аавьссон - побычный ТБез инте... Заголово... Заголово... Название Подзагол... Слабое в... А Найти да заменить стилит Выделить * а Редактирование Абзац Стили Inventory - NRV On 1 January 2018, GP LLC purchased 15,000 tons of raw materialand recorded inventory at 10,000 USD cost per ton, which included deferral of payment to supplier for three months for an additional charge of 10 million USDand 50 million USD import taxes, 20 million USD bonus to CEO for best price attained, and 15 million USD transportation costs. Average selling cost of inventory remained 1,500 USD per ton throughout the year. balance (in | Selling рriсе in $) Additional information: Dates Remaining units) 01.01.2018 | 15.000 31.03.2018 12.000 | 30.06.2018 9,000 30.09.2018 6,000 | 31.12.2018 3,000 12.500 10,500 8,500 9,500 6,500 Активация Windows Перемешиваем ее перейдите к параметрам си постерол В га 2 в 13oss e n Страница: 3 из 8 Число слов: 2 295 Английский (США) - о зача ( 3.10 2019 Required: Compute the closing inventory on each date shown in the above table and respective gains andndows овать Windoмерейдите losses from fluctuations in NRV. параметрам компьютера. Английский (США) | В 2 2 В 130ss — 0 — . з . ч. 9. 10. 2019 Страница: 4 из 8 Число слов: 2 295 3 да от.. . 11:32

Answer 1

Answer:

Date (1) 01.01.2018 31.03.2018 30.06.2018 30.09.2018 31.12.2018 Remaining Selling Selling Cost of NRV balance units Price cost inventory (2) (3) (4) (5)=(3)-(4)| (6 15000 12500 1500 11000 8333.33 12000 10500 1500 9000 8333.33 9000 8500 1500 8333.33 6000 9500 1500 8000 8333.33 3000 6500 1500 5000 8333.33 Reported value (7)= lower of (5) & (6) 8333.33 8333.33 7000 8000 5000 (in USD) Gain/(loss) on Total reported Total gain/(loss) fluctuation value on fluctation (8)=(6)-(7) | (9)=(7) x(2)| (10)=(8)x(2) 124999950 99999960 (1,333.33) 63000000 (1,19,99,970) (333.33) 48000000 (19,99,980) (3,333.33) 15000000 (99,99,990) 70001

Recorded inventory cost $ Less: Additional charges for deferral payment $ Less: Bonus to CEO $ Corrected cost of inventory $ 15,00,00,000 1,00,00,000 1,50,00,000 12,50,00,000 Inventory cost per ton=($125000000/15000) $ 8,333.33

For the above, loss on NRV fluctuation, 'Loss expense reducing inventory to LCM' account is to be debited and                  'Allowance reducing inventory to LCM' account is to be credited.

Note:- Borrowing cost i.e. additional charge for deferral payment and Bonus to CEO does not form part of inventory cost. Hence, they have been excluded from inventory cost.