### Lower of Cost or Net Realizable Value (LCNRV) Calculation**Scenario:** Wahlowitz Video Center has collected the following cost and net realizable value data for its inventory on December 31. #### Inventory Categories and Data:| Inventory Categories | Cost Data | Net Realizable Value Data ||----------------------|-----------|---------------------------|| Cameras | $12,500 | $13,400 || Camcorders | $9,000 | $9,500 || Blu-ray players | $13,000 | $12,200 |**Instructions:**1. **Compute the Lower-of-Cost-or-Net Realizable Value for Total Inventory:** - Determine the appropriate value for each inventory category, selecting the lower value between the cost and the net realizable value.2. **Calculate Inventory Turnover and Days in Inventory:** - Assess how often the inventory is sold and replaced over a period and calculate the average time inventory is held before sale.This data helps in valuing inventory accurately and understanding inventory efficiency.

LCNRV is a method of inventory evaluation where inventory is valued at lower of cost of NRV.

BE6.8 (LO 4), AP Wahlowitz Video Center accumulates the following cost and net realizable value data at December 31. Cost Data Inventory Categories Cameras Camcorders Blu-ray players Compute the lower-of-cost-or-net realizable value for the company's total inventory. $12,500 9,000 13,000 Net Realizable Value Data $13,400 9,500 12,200

BE6.8 (LO 4), AP Wahlowitz Video Center accumulates the following cost and net realizable value data at December 31. Cost Data Inventory Categories Cameras Camcorders Blu-ray players Compute the lower-of-cost-or-net realizable value for the company's total inventory. $12,500 9,000 13,000 Net Realizable Value Data $13,400 9,500 12,200

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Q10: What is 2021 Gross Margin Percentage?
Riverbed Corp reports the following for the month of June. Date Explanation Units Unit Cost Total Cost June 1 Inventory 129 $ 5 $ 645 12 Purchases 344 6 2,064 23 Purchases 203 7 1,421 30 Inventory 234 Correct answer icon Your answer is correct. Calculate weighted-average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Weighted-average unit cost $ enter weighted-average unit cost in dollars rounded to 3 decimal places Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round answers to 0 decimal places, e.g. 125.) FIFO LIFO Average-cost The cost of the ending inventory $ enter a dollar amount rounded to 0 decimal places $ enter a dollar amount rounded to 0 decimal places $ enter a dollar amount rounded to 0 decimal places The cost of goods sold $ enter a dollar amount rounded to 0…
74. Subject :- Accounting
What would be NUBD’s finished inventory cost at December 31, 2021 under the variable costing method? A. P 90,000 B. P 104,000 C. P 105,000 D. P 135,000
1.6 Calculate cost of sales Website maintenance 7900 Distribution costs 400 Fares 2400 Markets 47000 Final stock of goods 63000 Marketing expenses 10700 Initial inventory of goods 8600
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales $ 300,000 Beginning merchandise inventory $ 20,000 Purchases $ 200,000 Ending merchandise inventory $ 7,000 Fixed selling expense ?question mark Fixed administrative expense $ 12,000 Variable selling expense $ 15,000 Variable administrative expense ?question mark Contribution margin $ 60,000 Net operating income $ 18,000 3. Calculate the selling price per unit. 4. Calculate the variable cost per unit. 5. Calculate the contribution margin per unit.
please answer
Waterway Frame Camera Shop uses the lower-of-cost-or-net realizable value basis for its inventory. The following data are available at December 31. Item Units Cost per Unit Net RealizableValue per Unit Cameras: Minolta 8 $163 $155 Canon 10 154 156 Light Meters: Vivitar 20 121 110 Kodak 15 120 135
Given the following: Numberpurchased Costper unit Total January 1 inventory 32 $ 4 $ 128 April 1 52 6 312 June 1 42 7 294 November 1 47 8 376 173 $ 1,110 a. Calculate the cost of ending inventory using the FIFO (ending inventory shows 53 units). b. Calculate the cost of goods sold using the FIFO (ending inventory shows 53 units).
Provide solution