### 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

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