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: Iten A B ABODE A D C Total Net Item Quantity Total Cost Realizable Value 53 83 ENDING INVENTORY, CURRENT YEAR Quantity on Hand 53 83 13 73 353 13 73 353 Total Unit Cost When Acquired (FIFO) $18 88888 33 51 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. 28 13 Net Realizable Value (Market) at Year-End Lower of Cost or NRV $ 15 43 55 33 8 K
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: Iten A B ABODE A D C Total Net Item Quantity Total Cost Realizable Value 53 83 ENDING INVENTORY, CURRENT YEAR Quantity on Hand 53 83 13 73 353 13 73 353 Total Unit Cost When Acquired (FIFO) $18 88888 33 51 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. 28 13 Net Realizable Value (Market) at Year-End Lower of Cost or NRV $ 15 43 55 33 8 K
Chapter1: Financial Statements And Business Decisions
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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:
Iten
A
B
A
B
C
D
D
E
E
Total Net
Item Quantity Total Cost Realizable
Value
53
83
13
73
353
Quantity
on Hand
53
83
13
Total
ENDING INVENTORY, CURRENT YEAR
Unit Cost When
Acquired
(FIFO)
$18
73
353
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.
88888
33
28
13
Net Realizable
Value (Market)
at Year-End
Lower of
Cost or
NRV
$ 15
43
55
33
8
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