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
Chapter1: Financial Statements And Business Decisions
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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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