Exercise 6-10 Lower of cost and net realizable value LO4 Showtime Company's ending inventory at December 31, 2023, includes the following items: Units on Hand Net Realizable Value Per Unit 37 $115 20 138 51 172 55 92 Product BB FM MB SL Unit Cost $ 110 LCNRV applied to inventory 145 186 78 Required: Calculate LCNRV for the inventory: a. As a whole (assuming the items are similar).
Exercise 6-10 Lower of cost and net realizable value LO4 Showtime Company's ending inventory at December 31, 2023, includes the following items: Units on Hand Net Realizable Value Per Unit 37 $115 20 138 51 172 55 92 Product BB FM MB SL Unit Cost $ 110 LCNRV applied to inventory 145 186 78 Required: Calculate LCNRV for the inventory: a. As a whole (assuming the items are similar).
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Exercise 6-10 Lower of cost and net realizable value LO4
Showtime Company's ending inventory at December 31, 2023, includes the following items:
Units on
Hand
Net Realizable
Value Per Unit
$115
Product
BB
FM
MB
SL
20
51
55
Unit Cost
$ 110
145
LCNRV applied to inventory
186
78
Required:
Calculate LCNRV for the inventory:
a. As a whole (assuming the items are similar).
b. Applied separately to each product.
138
172
Transcribed Image Text:b. Applied separately to each product.
Product
BB
FM
MB
SL
$
Total
Cost
View transaction list
View transaction list
<
0 $
c. Prepare the appropriate adjusting entry, if required, based on your calculations in (b).
Total
NRV
Journal entry worksheet
1
Journal entry worksheet
LCNRV
applied to
Each Product
0 $
Date
Dec 31, 2023
c. Prepare the appropriate adjusting entry, if required, based on your calculations in (b).
Note: Enter debits before credits.
0
Record the entry to write down inventory to NRV.
General Journal
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3 of 5
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Next
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