Question

Riegel 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. Estimated selling price Cost - Item D $120 75 30 10 Item E $110 80 30 18 Item F $95 80 25 10 Item G $90 30 35 20 Item H Item $110 $90 50 36 30 30 10 20 Cost to complete Selling costs 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 $ Item G $ Item H $ Item l $

Answer 1

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NRV LCNRV $80 $75 -o calculation of NRV . = Expected selling price - costs to complete the sale (loc. produetion - 8 selling costs] Teost Item D I $75 [ $120-C $30+ $10) $62 [$110- ( $30+ $18) $80 $60 [ $95-($25+ $10)] Item G I $80 $35 $35 [ $90-($35+ $20)] Item E $80 $ 62 $ 62 Item $60 Item $50 $70 $50 [ $180 - ($30 + $10)] $40 [ $90 - ($30 + $ 20)] $36 Itom I $36 lower of cost and of cost and net Lower net realizable value (NRV). = LENRV