Part No. 121 is obsolete and has a realizable value of $1.00 each as scrap.(a) Determine the inventory as of December 31, 2020, by the LCNRV method, applying this method to each item.Inventory as of December 31, 2020 $ ________(b) Determine the inventory by the LCNRV method, applying the method to the total of the inventory.Inventory as of December 31, 2020 $ ________(Note: LCNRV refers to the Lower of Cost or Net Realizable Value method, a common accounting principle used to value inventory.) ### Inventory of Metlock Company as of December 31, 2020The inventory of Metlock Company consists of the following items:| Part | Quantity | Cost per Unit | Net Realizable Value ||------|----------|---------------|----------------------|| 110 | 570 | $113.00 | $119.00 || 111 | 970 | $71.40 | $62.00 || 112 | 540 | $95.20 | $90.00 || 113 | 180 | $202.30 | $214.20 || 120 | 380 | $244.00 | $248.00 || 121 (a) | 1,500 | $19.00 | $1.00 || 122 | 300 | $285.60 | $280.00 |(a) **Note:** Part No. 121 is considered obsolete and has a realizable value of $1.00 each as scrap.#### Tasks(a) **Determine the Inventory as of December 31, 2020**Using the Lower of Cost or Net Realizable Value (LCNRV) method, calculate the total inventory value by applying this method to each item individually.\[ \text{Inventory as of December 31, 2020} = \$ \_\_\_\_\_\_ \](b) **Determine the Inventory by the LCNRV Method**Apply the LCNRV method to the total of the inventory as a whole.

Lower-of-cost-or-net realizable value: The lower-of-cost-or-net realizable value (LCNRV) is a method which requires the reporting of the ending merchandise inventory in the financial statement of a company, at its current market value (net realizable value) or at its historical cost price, whichever is less. (a) (b)

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a Part No. 121 is obsolete and has a realizable value of $1.00 each as scrap. (a) Determine the inventory as of December 31, 2020, by the LCNRV method, applying this method to each item. Inventory as of December 31, 2020 %24 (b) Determine the inventory by the LCNRV method, applying the method to the total of the inventory. Inventory as of December 31, 2020 24

a Part No. 121 is obsolete and has a realizable value of $1.00 each as scrap. (a) Determine the inventory as of December 31, 2020, by the LCNRV method, applying this method to each item. Inventory as of December 31, 2020 %24 (b) Determine the inventory by the LCNRV method, applying the method to the total of the inventory. Inventory as of December 31, 2020 24

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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Inventory, 12/31/25 Purchases Purchase returns Purchase discounts Gross sales (before employee discounts) Sales returns Markups Markup cancellations Markdowns Markdown cancellations Freight in Employee discounts granted Loss from breakage (normal) Cost $158,500 752,100 42,300 11,400 37400 Retail $265.000 1,357,000 75,400 1,243,000 53,600 67,200 15,200 82,200 21,500 10.500 8.800
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On December 31, 2023, Jen & Mink Clothing (J&M) performed the inventory count and determined the year-end ending inventory value to be $77500, it is now January 8, 2024, and you have been asked to double-check the year-end inventory listing. J&M uses a perpetual inventory system Note: Only relevant items are shown on the inventory listing. # 1 2 Jen & Mink Clothing Inventory Listing December 31, 2023 Inventory Number Inventory Description Quantity (units) Blue jackets. Black pants 7649 10824 104 308 Unit Cost ($) Total Value ($) 24 2,496 5,852 19 Total Inventory $77,500 The following situations have been brought to your attention: a. On January 3, 2024, J&M received a shipment of 104 blue jackets, for $2,496 (Item #7649). The inventory was purchased December 23, 2023, FOB destination from Global Threads. This inventory was included in J&M's inventory count and inventory listing. b. On December 29, 2023, J&M sold scarves (Item # 5566) to a customer with a sale price of $740 and cost of…
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