E7-12 (Algo) Reporting Inventory at Lower of Cost or Net Realizable Value LO7-4 H.T. Tan Company is preparing the annual financial statements dated December 31 of the current year. Ending inventory information about the five major items stocked for regular sale follows: Item A B C A B с D E D E ENDING INVENTORY, CURRENT YEAR Unit Cost When Acquired 57 87 17 77 357 Quantity on Hand 57 87 17 Total Net Item Quantity Total Cost Realizable Value Total 77 357 Required: Compute the valuation that should be used for the current year ending inventory using lower of cost or net realizable value applied on an item-by-item basis. (FIFO) $ 22 37 55 32 17 Net Realizable Value (Market) at Year-End Lower of Cost or NRV $19 47 59 37 12
E7-12 (Algo) Reporting Inventory at Lower of Cost or Net Realizable Value LO7-4 H.T. Tan Company is preparing the annual financial statements dated December 31 of the current year. Ending inventory information about the five major items stocked for regular sale follows: Item A B C A B с D E D E ENDING INVENTORY, CURRENT YEAR Unit Cost When Acquired 57 87 17 77 357 Quantity on Hand 57 87 17 Total Net Item Quantity Total Cost Realizable Value Total 77 357 Required: Compute the valuation that should be used for the current year ending inventory using lower of cost or net realizable value applied on an item-by-item basis. (FIFO) $ 22 37 55 32 17 Net Realizable Value (Market) at Year-End Lower of Cost or NRV $19 47 59 37 12
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:E7-12 (Algo) Reporting Inventory at Lower of Cost or Net Realizable Value LO7-4
H.T. Tan Company is preparing the annual financial statements dated December 31 of the current year. Ending inventory information
about the five major items stocked for regular sale follows:
Item
A
B
C
D
E
A
B
с
D
E
57
87
17
ENDING INVENTORY, CURRENT YEAR
Unit Cost
When Acquired
Total Net
Item Quantity Total Cost Realizable
Value
77
357
Quantity
on Hand
57
87
Total
17
77
357
Required:
Compute the valuation that should be used for the current year ending inventory using lower of cost or net realizable value applied on
an item-by-item basis.
(FIFO)
$ 22
37
55
32
17
Net Realizable
Value (Market)
at Year-End
Lower of
Cost or
NRV
$ 19
47
59
37
12
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