Answered: Product Cost Selling Price Estimated…

Product Cost Selling Price Estimated Cost of Disposal $ 90,000 110,000 60,000 100,000 105,000 $150,000 120,000 70,000 115,000 110,000 $20,000 15,000 5,000 5,000 8,000 A B D

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 14.18E

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Concept explainers

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

Byron Company has five products in its inventory and uses the FIFO cost flow assumption. Specific data for each product are as follows:

1. what is the correct inventory value assuming the LCNRV rule is applied to each item of inventory? 2. What is the correct inventory value assuming the LCNRV rule is applied to the total of inventory? 3. Next Level Comment on any differences that result from applying the LCNRV rule to individual items coinpared to the total of inventory.

Product
Cost
Selling Price Estimated Cost of Disposal
$ 90,000
110,000
60,000
100,000
105,000
$150,000
120,000
70,000
115,000
110,000
$20,000
15,000
5,000
5,000
8,000
A
B
D

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