E9.3B (L0 1) (LCNRV) Sunshine Company follows the practice of pricing its inventory at LCNRV, on an individual-item basis. Item No. Quantity Cost per Unit Cost to Replace Estimated Selling Price Cost of Completion and Disposal Normal Profi t A 1,200 $8.10 $8.00 $9.00 $0.35 $0.90 B 600 6.00 5.60 6.00 0.45 0.50 C 200 5.50 5.00 7.00 0.40 1.00 D 700 7.25 7.50 8.00 0.50 0.90 E 1,000 2.10 2.00 2.80 0.65 0.20 F 500 4.05 4.00 5.00 0.40 0.75 G 2,000 8.75 8.15 9.00 0.60 0.50 H 300 9.95 9.00 10.50 0.30 1.00 Instructions From the information above, determine the amount of Sunshine Company inventory using the LCNRV method. determine the amount of Sunshine Company inventory using the LCM method.
E9.3B (L0 1) (LCNRV) Sunshine Company follows the practice of pricing its inventory at LCNRV, on an individual-item basis. Item No. Quantity Cost per Unit Cost to Replace Estimated Selling Price Cost of Completion and Disposal Normal Profi t A 1,200 $8.10 $8.00 $9.00 $0.35 $0.90 B 600 6.00 5.60 6.00 0.45 0.50 C 200 5.50 5.00 7.00 0.40 1.00 D 700 7.25 7.50 8.00 0.50 0.90 E 1,000 2.10 2.00 2.80 0.65 0.20 F 500 4.05 4.00 5.00 0.40 0.75 G 2,000 8.75 8.15 9.00 0.60 0.50 H 300 9.95 9.00 10.50 0.30 1.00 Instructions From the information above, determine the amount of Sunshine Company inventory using the LCNRV method. determine the amount of Sunshine Company inventory using the LCM method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
E9.3B (L0 1) (LCNRV) Sunshine Company follows the practice of pricing its inventory at LCNRV, on an individual-item basis.
|
Item No. |
Quantity |
Cost per Unit |
Cost to Replace |
Estimated Selling Price |
Cost of Completion and Disposal |
Normal Profi t |
|
A |
1,200 |
$8.10 |
$8.00 |
$9.00 |
$0.35 |
$0.90 |
|
B |
600 |
6.00 |
5.60 |
6.00 |
0.45 |
0.50 |
|
C |
200 |
5.50 |
5.00 |
7.00 |
0.40 |
1.00 |
|
D |
700 |
7.25 |
7.50 |
8.00 |
0.50 |
0.90 |
|
E |
1,000 |
2.10 |
2.00 |
2.80 |
0.65 |
0.20 |
|
F |
500 |
4.05 |
4.00 |
5.00 |
0.40 |
0.75 |
|
G |
2,000 |
8.75 |
8.15 |
9.00 |
0.60 |
0.50 |
|
H |
300 |
9.95 |
9.00 |
10.50 |
0.30 |
1.00 |
Instructions
From the information above,
- determine the amount of Sunshine Company inventory using the LCNRV method.
- determine the amount of Sunshine Company inventory using the LCM method.
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