Presented below is information related to Bonita Inc.’s inventory. (per unit) Skis Boots Parkas Historical cost $275.50 $153.70 $76.85 Selling price 307.40 210.25 106.94 Cost to sell 27.55 11.60 3.63 Cost to complete 46.40 42.05 30.81 Determine the following: the net realizable value for each item, and the carrying value of each item under LCNRV.
Presented below is information related to Bonita Inc.’s inventory. (per unit) Skis Boots Parkas Historical cost $275.50 $153.70 $76.85 Selling price 307.40 210.25 106.94 Cost to sell 27.55 11.60 3.63 Cost to complete 46.40 42.05 30.81 Determine the following: the net realizable value for each item, and the carrying value of each item under LCNRV.
Intermediate Accounting: Reporting And Analysis
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ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
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Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...
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Presented below is information related to Bonita Inc.’s inventory.
(per unit)
|
Skis
|
Boots
|
Parkas
|
|||
---|---|---|---|---|---|---|
Historical cost
|
$275.50
|
$153.70
|
$76.85
|
|||
Selling price
|
307.40
|
210.25
|
106.94
|
|||
Cost to sell
|
27.55
|
11.60
|
3.63
|
|||
Cost to complete
|
46.40
|
42.05
|
30.81
|
Determine the following: the net realizable value for each item, and the carrying value of each item under LCNRV.
Expert Solution
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Step 1 Introduction
Net realizable value = Selling price - cost to sell - cost to complete.
The inventory should be valued at lower of cost or net realizable value.
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