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. Broad leaf trees: Ash Beech Needle leaf trees: Cedar Fir Fruit trees: Selling Price Product Ash Beech Cedar Fir Apple Cherry Inventory value $ 1,610 2,770 Apple Cherry The costs to sell are 10% of selling price. $ 3,260 3,100 Cost $ 2,180 2,870 Cost Required: Determine the reported inventory value assuming the lower of cost or net realizable value rule is applied to individual trees. NRV $ 1,520 1,420 $ 1,570 3,170 $ 1,220 1,620 Lower of Cost or NRV 4
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. Broad leaf trees: Ash Beech Needle leaf trees: Cedar Fir Fruit trees: Selling Price Product Ash Beech Cedar Fir Apple Cherry Inventory value $ 1,610 2,770 Apple Cherry The costs to sell are 10% of selling price. $ 3,260 3,100 Cost $ 2,180 2,870 Cost Required: Determine the reported inventory value assuming the lower of cost or net realizable value rule is applied to individual trees. NRV $ 1,520 1,420 $ 1,570 3,170 $ 1,220 1,620 Lower of Cost or NRV 4
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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.
Broad leaf trees:
Ash
Beech
Needle leaf trees:
Cedar
Fir
Fruit trees:
Apple
Cherry
Selling
Price
Product
Ash
Beech
Cedar
Fir
Apple
Cherry
Inventory value
$ 1,610
2,770
The costs to sell are 10% of selling price.
$ 3,260
3,100
Cost
$ 2,180
2,870
Cost
NRV
$ 1,520
1,420
Required:
Determine the reported inventory value assuming the lower of cost or net realizable value rule is applied to individual trees.
$ 1,570
3,170
$1,220
1,620
cccccccccccc
Lower of
Cost or NRV
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