Inventory Write-Down The following information is taken from Aden Company's records: Product Group Units Cost/Unit Market/Unit A 1 600 $1.10 $0.90 B 1 250 1.50 1.55 2 200 4.90 5.15 D 2 100 6.50 6.40 E 3 80 25.00 24.60 Required: What is the correct inventory value if the company applies the LCNRV rule to each of the following?
Inventory Write-Down The following information is taken from Aden Company's records: Product Group Units Cost/Unit Market/Unit A 1 600 $1.10 $0.90 B 1 250 1.50 1.55 2 200 4.90 5.15 D 2 100 6.50 6.40 E 3 80 25.00 24.60 Required: What is the correct inventory value if the company applies the LCNRV rule to each of the following?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Inventory Write-Down
The following information is taken from Aden Company's records:
Product Group Units Cost/Unit Market/Unit
A
1
600
$1.10
$0.90
B
1.
250
1.50
1.55
200
4.90
5.15
D.
100
6.50
6.40
3
80
25.00
24.60
Required:
What is the correct inventory value if the company applies the LCNRV rule to each of the following?
a. Individual items
Product A
540
Product B
450 x
Product C
980
Product D
640
Product E
1,968 V
Total inventory value
4,578 x
b. Groups of items
Group 1
1,005 x
Group 2
1,630
Group 3
1,968
Total inventory value
4,603 x
c. The inventory as a whole
Total inventory value
4,643 x
%24
%24
%24
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4a838c8e-9209-4b5d-b96a-c966f484a578%2Fd4c22a60-c8c8-4fde-8514-25808e84cd29%2Fzvsncqi_processed.png&w=3840&q=75)
Transcribed Image Text:Inventory Write-Down
The following information is taken from Aden Company's records:
Product Group Units Cost/Unit Market/Unit
A
1
600
$1.10
$0.90
B
1.
250
1.50
1.55
200
4.90
5.15
D.
100
6.50
6.40
3
80
25.00
24.60
Required:
What is the correct inventory value if the company applies the LCNRV rule to each of the following?
a. Individual items
Product A
540
Product B
450 x
Product C
980
Product D
640
Product E
1,968 V
Total inventory value
4,578 x
b. Groups of items
Group 1
1,005 x
Group 2
1,630
Group 3
1,968
Total inventory value
4,603 x
c. The inventory as a whole
Total inventory value
4,643 x
%24
%24
%24
%24
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