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 ABCDE Quantity on Hand 59 89 19 79 359 A B с D E ENDING INVENTORY, CURRENT YEAR 59 89 19 79 359 Total Unit Cost When Acquired (FIFO) Total Net Item Quantity Total Cost Realizable Value $ 24 39 57 34 لا لا لا - 9746 19 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. Net Realizable Value (Market) at Year-End Lower of Cost or NRV $ 21 49 61 39 14
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 ABCDE Quantity on Hand 59 89 19 79 359 A B с D E ENDING INVENTORY, CURRENT YEAR 59 89 19 79 359 Total Unit Cost When Acquired (FIFO) Total Net Item Quantity Total Cost Realizable Value $ 24 39 57 34 لا لا لا - 9746 19 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. Net Realizable Value (Market) at Year-End Lower of Cost or NRV $ 21 49 61 39 14
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
С
с
D
E
Quantity
on Hand
59
89
A
B
с
D
E
19
79
359
59
89
19
79
359
Total
ENDING INVENTORY, CURRENT YEAR
Unit Cost When
Acquired (FIFO)
Total Net
Item Quantity Total Cost Realizable
Value
$24
39
57
34
19
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..
Net Realizable
Value (Market)
at Year-End
$ 21
Lower of
Cost or
NRV
49
61
39
14
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