A local Chevrolet dealership carries the following types of vehicles: Unit Unit Inventory Items Vans Quantity Cost NRV Trucks 2-door sedans $27,000 18,000 $25,000 17,000 15,000 7 3 13,000 4-door sedans 20,000 17,000 37,000 30,000 Sports cars 1 40,000 SUVS 6 28,000 Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVS, vans, and trucks. 2. Determine whether each inventory item would be reported at cost or net realizable value (NRV). Enter the amount of either the Unit Cost or Unit NRV in the "Lower of Cost and NRV per unit" column and then multiply this amount by the quantity of each inventory item and enter it in the Total column. Lower of Cost Inventory Items Cost or NRV and NRV per Total unit Vans Trucks 2-door sedans 4-door sedans Cost Sports cars NRV SUVS Total

A local Chevrolet dealership carries the following types of vehicles: Unit Unit Inventory Items Vans Quantity Cost NRV Trucks 2-door sedans $27,000 18,000 $25,000 17,000 15,000 7 3 13,000 4-door sedans 20,000 17,000 37,000 30,000 Sports cars 1 40,000 SUVS 6 28,000 Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVS, vans, and trucks. 2. Determine whether each inventory item would be reported at cost or net realizable value (NRV). Enter the amount of either the Unit Cost or Unit NRV in the "Lower of Cost and NRV per unit" column and then multiply this amount by the quantity of each inventory item and enter it in the Total column. Lower of Cost Inventory Items Cost or NRV and NRV per Total unit Vans Trucks 2-door sedans 4-door sedans Cost Sports cars NRV SUVS Total

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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