120 121 122 480 1,610 320 205 15 250 Inventory as at December 31, 2023 $ "Part No. 121 is obsolete and has a realizable value of $0.20 each as scrap. (a) Determine the inventory as at December 31, 2023, using the lower of cost and net realizable value m directly to each item. Inventory as at December 31, 2023 E 19 218 0.20 (b) Determine the inventory as at December 31, 2023, using the lower of cost and net realizable value m the total of the inventory. $ 245

120 121 122 480 1,610 320 205 15 250 Inventory as at December 31, 2023 $ "Part No. 121 is obsolete and has a realizable value of $0.20 each as scrap. (a) Determine the inventory as at December 31, 2023, using the lower of cost and net realizable value m directly to each item. Inventory as at December 31, 2023 E 19 218 0.20 (b) Determine the inventory as at December 31, 2023, using the lower of cost and net realizable value m the total of the inventory. $ 245

Name: Sh43 The inventory of Marigold Company on December 31, 2023, consists
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Description: Sh43 The inventory of Marigold Company on December 31, 2023, consists of the following items.PartNo.110111112113.120121.122Quantity6409805003004801,610320Cost per Unit$70609017020515250Inventory as at December 31, 2023Inventory as at December 31, 202

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 2MC: The following items were included in Venicio Corporations inventory account on December 31, 2019:...

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Question

Sh43

The inventory of Marigold Company on December 31, 2023, consists of the following items.
Part
No.
110
111
112
113.
120
121.
122
Quantity
640
980
500
300
480
1,610
320
Cost per Unit
$70
60
90
170
205
15
250
Inventory as at December 31, 2023
Inventory as at December 31, 2023 $
NRV
$110
44
56
180
"Part No. 121 is obsolete and has a realizable value of $0.20 each as scrap.
(a) Determine the inventory as at December 31, 2023, using the lower of cost and net realizable value method, applying this method
directly to each item.
218
0.20
245
(b) Determine the inventory as at December 31, 2023, using the lower of cost and net realizable value method, applying the method to
the total of the inventory.

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