Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2021 y s as follows: Inventory, by Product Category Tools: Hanners Saus Screwdrivers Paint products: 1-gallon cans Paint brushes Quantity 100 290 390 590 100 Per Unit Cost $5.90 10.90 2.90 6.90 4.90 Net Realizable Value 56.40 9.90 3.50 5.90 5.40
Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2021 y s as follows: Inventory, by Product Category Tools: Hanners Saus Screwdrivers Paint products: 1-gallon cans Paint brushes Quantity 100 290 390 590 100 Per Unit Cost $5.90 10.90 2.90 6.90 4.90 Net Realizable Value 56.40 9.90 3.50 5.90 5.40
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2021 year-end inventory
is as follows:
Inventory,
by Product Category
Tools:
Hanners
Saus
Screwdrivers
Paint products:
1-gallon cans
Paint brushes
Tools
Product
Hammers
Saws
Screwdrivers
Total tools
Paint products
1-gallon cans
Paint brushes
Total paint
Total
$
Required:
1. Determine the carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule is applied to
(a) individual products, (b) product categories, and (c) total inventory.
2. Assuming inventory write-downs are common for Almaden, record any necessary year-end adjustment amount for each of the
LCNRV applications in requirement 1
Complete this question by entering your answers in the tabs below.
S
Quantity
100
290
390
Required 1 Required 2
Determine the carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule is
applied to (a) individual products, (b) product categories, and (c) total inventory.
Lower of cost and NRV
S
590
100
Cost
Per Unit
Cost
$5.90
10.90
2.90
0 S
6.90
4.90
0 S
Net
Realizable
Value
Net Realizable By Individual
Value
Products
0
$6.40
9.90
3.50
0
5.90
5.40
OSOS
By
Product
Categories
0 S
0
By Total
Inventory
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