Floyd Corporation has the following four items in its ending inventory.000Item000000Cost000Net Realizable 0Value (NRV)0Jokers$2,00000$2,100000Penguins5,000004,950000Riddlers4,400004,625000Scarecrows3,200003,830000Determine the following: (a) the LCNRV for each item, and (b) the amount of write-down, if any, using (1) an item-by-item LCNRV evaluation and (2) a total category LCNRV evaluation.

Answered: Floyd Corporation has the following…

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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Floyd Corporation has the following four items in its ending inventory.

000Item000	000Cost000	Net Realizable 0Value (NRV)0
Jokers	$2,00000	$2,100000
Penguins	5,00000	4,950000
Riddlers	4,40000	4,625000
Scarecrows	3,20000	3,830000

Determine the following: (a) the LCNRV for each item, and (b) the amount of write-down, if any, using (1) an item-by-item LCNRV evaluation and (2) a total category LCNRV evaluation.

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