Book Print cames the following types of vehicles: Quantity 3 Unit Cost $ 21,000 16,809 11,800 6 Inventory Items Vans Trucks 2-door sedans 4-door sedans Sports cars SUVS Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks. Required: 1. Compute the total cost of the entire inventory. 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. 2 7 3 5 15,800 31,000 27,600 Required 1 Required 2 Required 3 Assets Unit NRV $ 19,000 15,800 13,800 18,800 3. From the information in the previous requirements, determine the financial statement effects of using lower of cost and net realizable value to report inventory. 34,000 22,000 Complete this question by entering your answers in the tabs below. From the information in the previous requirements, determine the financial statement effects of using lower of cost and net realizable value to report inventory. Note: Amounts to be deducted should be indicated with a minus sign. Balance Sheet Liabilities Stockholders' Equity Common Stock Retained Earnings < Required 2 Revenues Required 3 > Income Statement Expenses Net Ir
Book Print cames the following types of vehicles: Quantity 3 Unit Cost $ 21,000 16,809 11,800 6 Inventory Items Vans Trucks 2-door sedans 4-door sedans Sports cars SUVS Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks. Required: 1. Compute the total cost of the entire inventory. 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. 2 7 3 5 15,800 31,000 27,600 Required 1 Required 2 Required 3 Assets Unit NRV $ 19,000 15,800 13,800 18,800 3. From the information in the previous requirements, determine the financial statement effects of using lower of cost and net realizable value to report inventory. 34,000 22,000 Complete this question by entering your answers in the tabs below. From the information in the previous requirements, determine the financial statement effects of using lower of cost and net realizable value to report inventory. Note: Amounts to be deducted should be indicated with a minus sign. Balance Sheet Liabilities Stockholders' Equity Common Stock Retained Earnings < Required 2 Revenues Required 3 > Income Statement Expenses Net Ir
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Book
Print
cames the following types of vehicles:
Quantity
3
Unit Cost
$ 21,000
16,809
11,800
6
Inventory Items
Vans
Trucks
2-door sedans
4-door sedans
Sports cars
SUVS
Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks.
Required:
1. Compute the total cost of the entire inventory.
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.
2
7
3
5
15,800
31,000
27,600
Required 1 Required 2 Required 3
Assets
Unit NRV
$ 19,000
15,800
13,800
18,800
3. From the information in the previous requirements, determine the financial statement effects of using lower of cost and net
realizable value to report inventory.
34,000
22,000
Complete this question by entering your answers in the tabs below.
From the information in the previous requirements, determine the financial statement effects of using lower of cost and net realizable value to report inventory.
Note: Amounts to be deducted should be indicated with a minus sign.
Balance Sheet
Liabilities
Stockholders' Equity
Common Stock
Retained Earnings
< Required 2
Revenues
Required 3 >
Income Statement
Expenses
Net Ir
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