Problem 12-4 (IAA)White Company carried four items in inventory. Thefollowing per-unit data relate to these items at the end offirst year of operations:UnitsCost Sales price Selling cost Normal profitCategory 1:10513025,00020,000A1520В85901010.Category 2:40,00030,000C504565751510Required:Calculate the value of the inventory under the followingapproaches:a. The LCNRV is applied to the individual inventory itemb. The LCNRV is applied to the inventory categoryc. The LCNRV is applied to the inventory as a whole

Name: Problem 12-4 (IAA)White Company carried four items in inventory. Thef
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Description: Problem 12-4 (IAA)White Company carried four items in inventory. Thefollowing per-unit data relate to these items at the end offirst year of operations:UnitsCost Sales price Selling cost Normal profitCategory 1:10513025,00020,000A1520В85901010.Categ

LCNRV is lower of cost or net realisable value method, in which inventory is valued at lower of two…

Business

Accounting

Problem 12-4 (IAA) White Company carried four items in inventory. The following per-unit data relate to these items at the end of first year of operations: Units Cost Sales price Selling cost Normal profit Category 1: 25,000 20,000 A 105 130 15 20 В 85 90 10 10 Category 2: C 40,000 30,000 50 45 D 65 75 15 10 Required: Calculate the value of the inventory under the following approaches: a. The LCNRV is applied to the individual inventory item b. The LCNRV is applied to the inventory category c. The LCNRV is applied to the inventory as a whole

Problem 12-4 (IAA) White Company carried four items in inventory. The following per-unit data relate to these items at the end of first year of operations: Units Cost Sales price Selling cost Normal profit Category 1: 25,000 20,000 A 105 130 15 20 В 85 90 10 10 Category 2: C 40,000 30,000 50 45 D 65 75 15 10 Required: Calculate the value of the inventory under the following approaches: a. The LCNRV is applied to the individual inventory item b. The LCNRV is applied to the inventory category c. The LCNRV is applied to the inventory as a whole

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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am.105.
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