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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 A B C D E E 62 92 22 82 362 Total Quantity on Hand 62 92 Total Net Item Quantity Total Cost Realizable Value $ ENDING INVENTORY, CURRENT YEAR 22 82 362 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. . Unit Cost When Net Realizable. Value (Market) at Year-End 0 S Acquired (FIFO) $ 13 41 53 31 6 Lower of Cost or NRV OS $ 16 31 49 26 11 0

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 A B C D E E 62 92 22 82 362 Total Quantity on Hand 62 92 Total Net Item Quantity Total Cost Realizable Value $ ENDING INVENTORY, CURRENT YEAR 22 82 362 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. . Unit Cost When Net Realizable. Value (Market) at Year-End 0 S Acquired (FIFO) $ 13 41 53 31 6 Lower of Cost or NRV OS $ 16 31 49 26 11 0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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25 E7-12 (Algo) Reporting Inventory at Lower of Cost or Net Realizable Value LO7-4 Bwth 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: A B Item A MODE B C D C E Item Quantity Total Cost 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. 62 92 22 32 302 Total Quantity on Hand 62 92 22 82 362 S ENDING INVENTORY, CURRENT YEAR 0 Unit Cost When Net Realizable Value (Market) at Year-End $ 16 31 49 26 11 Total Net Realizable Value S Acquired (FIFO) $13 53 31 6 Lower of Cost or NRV DAUGHTER 0
Transcribed Image Text:25 E7-12 (Algo) Reporting Inventory at Lower of Cost or Net Realizable Value LO7-4 Bwth 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: A B Item A MODE B C D C E Item Quantity Total Cost 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. 62 92 22 32 302 Total Quantity on Hand 62 92 22 82 362 S ENDING INVENTORY, CURRENT YEAR 0 Unit Cost When Net Realizable Value (Market) at Year-End $ 16 31 49 26 11 Total Net Realizable Value S Acquired (FIFO) $13 53 31 6 Lower of Cost or NRV DAUGHTER 0
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