Novelli's Nursery has developed the following data in order to calculate the lower of cost or net realizable value for its products. The individual products are listed within the categories of trees. Selling Price Cost Broad leaf trees: Ash $ 1,860 $ 1,760 Beech 2,290 1,660 Needle leaf trees: Cedar $ 2,620 $ 1,810 Fir 3,450 3,410 Fruit trees: Apple $ 1,860 $ 1,460 Cherry 2,390 1,860 The costs to sell are 10% of selling price. Required: Determine the reported inventory value assuming the lower of cost or net realizable value rule is applied to individual trees. Product Cost NRV Lower of Cost or NRV Ash Beech Cedar Fir Apple Cherry Inventory value
Novelli's Nursery has developed the following data in order to calculate the lower of cost or net realizable value for its products. The individual products are listed within the categories of trees. Selling Price Cost Broad leaf trees: Ash $ 1,860 $ 1,760 Beech 2,290 1,660 Needle leaf trees: Cedar $ 2,620 $ 1,810 Fir 3,450 3,410 Fruit trees: Apple $ 1,860 $ 1,460 Cherry 2,390 1,860 The costs to sell are 10% of selling price. Required: Determine the reported inventory value assuming the lower of cost or net realizable value rule is applied to individual trees. Product Cost NRV Lower of Cost or NRV Ash Beech Cedar Fir Apple Cherry Inventory value
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Novelli's Nursery has developed the following data in order to calculate the lower of cost or net realizable value for its products. The individual products are listed within the categories of trees.
| Selling Price |
Cost | |||||
| Broad leaf trees: | ||||||
| Ash | $ | 1,860 | $ | 1,760 | ||
| Beech | 2,290 | 1,660 | ||||
| Needle leaf trees: | ||||||
| Cedar | $ | 2,620 | $ | 1,810 | ||
| Fir | 3,450 | 3,410 | ||||
| Fruit trees: | ||||||
| Apple | $ | 1,860 | $ | 1,460 | ||
| Cherry | 2,390 | 1,860 | ||||
The costs to sell are 10% of selling price.
Required:
Determine the reported inventory value assuming the lower of cost or net realizable value rule is applied to individual trees.
|
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