REQUIRED:(a) Calculate the LCNRV using the “individual-item” approach.(b) Prepare the journal entries as at 31 December 2020 assuming that a loss method and the Allowance to Reduce Inventory to NRV Account is used to record the write down of the inventory.(c) Assume that as at 31 December 2020, the account of Allowance to Reduce Inventory to NRV had a credit balance of RM14,500. Determine the amount of the gain or loss that would be recorded due to the change in the Allowance to Reduce Inventory to NRV Account as in (b). Show the related journal entries. ExcelPro Bhd is a company that mamufactures and distributes electrical home appliances acrossMalaysia and exports to over 20 countries worldwide. The company offers products that include avariety of general fans and small kitchen appliances, then it has a variety of inventories. ExcelProfollows the practice of valuing inventory at the Lower of Cost or Net Realizable Value (LCNRV).The following infomation is available from the company's inventory records as of 31 December2020.Quantity Cost per Unit EstimatedsellingUnit (RM)201.90Completion andCostItem(RM)Pricel Selling/UnitVacuum Cleaner300215.004.60Multi Cooker550108.00196.908.80Wall Fan8098.0080.8011.605.703.50Electric Oven230210.00156.70Air Fryer420232.00293.50

Name: REQUIRED:(a) Calculate the LCNRV using the “individual-item” approach.
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Description: REQUIRED:(a) Calculate the LCNRV using the “individual-item” approach.(b) Prepare the journal entries as at 31 December 2020 assuming that a loss method and the Allowance to Reduce Inventory to NRV Account is used to record the write down of the inve

Item Cost per Unit (RM) Estimated Selling Price / Unit (RM) Completion & Selling cost / unit…

Answered: ExcelPro Bhd is a company that…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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REQUIRED:
(a) Calculate the LCNRV using the “individual-item” approach.

(b) Prepare the journal entries as at 31 December 2020 assuming that a loss method and the Allowance to Reduce Inventory to NRV Account is used to record the write down of the inventory.

(c) Assume that as at 31 December 2020, the account of Allowance to Reduce Inventory to NRV had a credit balance of RM14,500. Determine the amount of the gain or loss that would be recorded due to the change in the Allowance to Reduce Inventory to NRV Account as in (b). Show the related journal entries.

ExcelPro Bhd is a company that mamufactures and distributes electrical home appliances across
Malaysia and exports to over 20 countries worldwide. The company offers products that include a
variety of general fans and small kitchen appliances, then it has a variety of inventories. ExcelPro
follows the practice of valuing inventory at the Lower of Cost or Net Realizable Value (LCNRV).
The following infomation is available from the company's inventory records as of 31 December
2020.
Quantity Cost per Unit Estimated
selling
Unit (RM)
201.90
Completion and
Cost
Item
(RM)
Pricel Selling
/Unit
Vacuum Cleaner
300
215.00
4.60
Multi Cooker
550
108.00
196.90
8.80
Wall Fan
80
98.00
80.80
11.60
5.70
3.50
Electric Oven
230
210.00
156.70
Air Fryer
420
232.00
293.50

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