Question

nt Practice and ons Manual --/1 Question 1 View Policies Current Attempt in Progress CPAexcel Con- Access ssions rences Waterway 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. porations PLUS Support Item H Item Estimated selling price Cost Item D $144 90 36 2 Item E $132 96 36 22 Item F $114 96 30 12 Item G $108 96 42 24 $132 60 36 12 $108 43 36 24 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 5 Item F Item G 5 Item H S Items

Answer 1

Solution

Item D	$    90.00
Item E	$    74.00
Item F	$    72.00
Item G	$    42.00
Item H	$    60.00
Item I	$    43.00

Working

	Item D	Item E	Item F	Item G	Item H	Item I
Selling price (A)	$ 144.00	$ 132.00	$ 114.00	$ 108.00	$ 132.00	$ 108.00
Cost to complete (B)	$    36.00	$    36.00	$    30.00	$    42.00	$    36.00	$    36.00
Selling cost (C )	$    12.00	$    22.00	$    12.00	$    24.00	$    12.00	$    24.00
Net realizable value [A-(B+C)]	$    96.00	$    74.00	$    72.00	$    42.00	$    84.00	$    48.00
Cost (D)	$    90.00	$    96.00	$    96.00	$    96.00	$    60.00	$    43.00
Lower of cost of NRV	$    90.00	$    74.00	$    72.00	$    42.00	$    60.00	$    43.00