Knowledge Check 01A company has gathered the following per unit cost and replacement cost information relating to Its inventory:- Item A: 5 units with a cost of $50 and a net realizable value of $45Item B: 7 units with a cost of $60 and a net realizable value of $65Item C: 9 units with a cost of $30 and a net reallizable value of $25Under the lower of cost or net realizable value method, what is the amount of ending inventory that should be reported on thecompany's balance sheet?Ending inventory45< Prey9 of 15Next >Form 1040Sch....pdfForm1040 Sch...pdff1040 Schedul..pdfForm8829 (1).pdfMacBook Air

Lower of Cost and Net Realizable Value Method, is used for recording the value of Inventory in the…

Knowledge Check 01 A company has gathered the following per unit cost and replacement cost information relating to its inventory: Item A: 5 units with a cost of $50 and a net realizable value of $45 • Item B: 7 units with a cost of $60 and a net realizable value of $65 • Item C: 9 units with a cost of $30 and a net realizable value of $25 Under the lower of cost or net realizable value method, what is the amount of ending inventory that should be reported on the company's balance sheet? Ending inventory 2$ 45

Knowledge Check 01 A company has gathered the following per unit cost and replacement cost information relating to its inventory: Item A: 5 units with a cost of $50 and a net realizable value of $45 • Item B: 7 units with a cost of $60 and a net realizable value of $65 • Item C: 9 units with a cost of $30 and a net realizable value of $25 Under the lower of cost or net realizable value method, what is the amount of ending inventory that should be reported on the company's balance sheet? Ending inventory 2$ 45

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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M1.
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Do not use dollar signs in your answers. It your answer is a negative number, put a minus sign in front. What is the balance in ending inventory using a LIFO cost flow when you sell 2,300 units for $18 per unit? Date Source 1/1/2011 Beginning Inventory 2/1/2011 Purchase 3/1/2011 Purchase Total Goods Available for Sale 33,400 Units Purchased 950 800 1,500 3,250 Cost Per Unit $14 $10 $12 Total Cost $ 13,300 $ 8,000 $ 18,000 $39,300
A-2
Question - Company sells three different categories of tools (small, medium, and large). The cost and market value of its inventory of tools is as follows. Cost Market Value Small $ 63,200 $ 72,000 Medium 2,89,400 2,60,800 Large 1,52,100 1,72,800 Determine the value of the company's inventory under the lower-of- cost-or-market value approach.
Cost Selling price Costs to sell Product 1 2 3 $ Required: What unit values should Han use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule to ending inventory? Cost Product 1 $ 20 40 20✔ $ 90 ✓ 50 ✓ 6 NRV Product 2 $ 90 120 40 34✔✔ $ X 60✔ Product 3 $ 50 70 10 Per Unit Inventory Value 20✔ X 50 ✓
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