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 D Quantity on Hand 59 89 19 79 359 ENDING INVENTORY, CURRENT YEAR Unit Cost When Acquired (FIFO) $24 39 57 34 19 Net Realizable Value (Market) at Year-End $ 21 49 61 39 14 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.
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 D Quantity on Hand 59 89 19 79 359 ENDING INVENTORY, CURRENT YEAR Unit Cost When Acquired (FIFO) $24 39 57 34 19 Net Realizable Value (Market) at Year-End $ 21 49 61 39 14 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.
Chapter10: Inventory
Section: Chapter Questions
Problem 5EA: Akira Company had the following transactions for the month. Calculate the ending inventory dollar...
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![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
A
B
с
D
E
Quantity
on Hand
59
89
59
89
19
79
359
19
79
359
Total
ENDING INVENTORY, CURRENT YEAR
Total Net
Item Quantity Total Cost Realizable
Value
Unit Cost When
Acquired (FIFO)
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.
$ 24
39
57
34
19
Net Realizable
Value (Market)
at Year-End
$ 21
Lower of
Cost or
NRV
49
61
39
14](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F58d48065-da4d-48be-8659-09c3b6098ea5%2F82712ffb-5a4a-4cd1-a02f-974a4a05be98%2Fi90t83n_processed.png&w=3840&q=75)
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
A
B
с
D
E
Quantity
on Hand
59
89
59
89
19
79
359
19
79
359
Total
ENDING INVENTORY, CURRENT YEAR
Total Net
Item Quantity Total Cost Realizable
Value
Unit Cost When
Acquired (FIFO)
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.
$ 24
39
57
34
19
Net Realizable
Value (Market)
at Year-End
$ 21
Lower of
Cost or
NRV
49
61
39
14
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