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Question 9 Writing (LCNRV) Taipai Ltd. follows the practice of valuing its inventory at the LCNRV. The following information is available from the company's inventory records as of December 31, 2022 (amounts in thousands). Estimated Completion & Selling Unit Selling Item Quantity Cost Price/Unit Cost/Unit A 1,100 NT$7.50 NT$10.50 NT$1.50 B 800 8.20 9.40 1.30 C 1,000 5.60 7.20 1.75 1,000 3.80 6.30 1.80 1,400 6.40 6.70 0.70 Instructions Jay Shin is an accounting clerk in the accounting department of Taipai Co., and he cannot understand how completion and selling costs affect the determination of net realizable value. Jay is very confused, and he is the one who records inventory purchases and calculates ending inventory. You are the manager of the department and an accountant. a. Calculate the LCNRV using the "individual-item" approach. b. Show the journal entry he will need to make in order to write down the ending inventory from cost to NRV. Assume 11o callotvrince wekg mauk n prier perieed .

Question 9 Writing (LCNRV) Taipai Ltd. follows the practice of valuing its inventory at the LCNRV. The following information is available from the company's inventory records as of December 31, 2022 (amounts in thousands). Estimated Completion & Selling Unit Selling Item Quantity Cost Price/Unit Cost/Unit A 1,100 NT$7.50 NT$10.50 NT$1.50 B 800 8.20 9.40 1.30 C 1,000 5.60 7.20 1.75 1,000 3.80 6.30 1.80 1,400 6.40 6.70 0.70 Instructions Jay Shin is an accounting clerk in the accounting department of Taipai Co., and he cannot understand how completion and selling costs affect the determination of net realizable value. Jay is very confused, and he is the one who records inventory purchases and calculates ending inventory. You are the manager of the department and an accountant. a. Calculate the LCNRV using the "individual-item" approach. b. Show the journal entry he will need to make in order to write down the ending inventory from cost to NRV. Assume 11o callotvrince wekg mauk n prier perieed .

FINANCIAL ACCOUNTING
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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Question 9 Writing (LCNRV) Taipai Ltd. follows the practice of valuing its inventory at the LCNRV. The following information is available from the company's inventory records as of December 31, 2022 (amounts in thousands). Estimated Completion & Selling Unit Selling Price/Unit Item Quantity Cost Cost/Unit A 1,100 NT$7.50 NT$10.50 NT$1.50 B 800 8.20 9.40 1.30 C 1,000 5.60 7.20 1.75 1,000 3.80 6.30 1.80 E 1,400 6.40 6.70 0.70 Instructions Jay Shin is an accounting clerk in the accounting department of Taipai Co., and he cannot understand how completion and selling costs affect the determination of net realizable value. Jay is very confused, and he is the one who records inventory purchases and calculates ending inventory. You are the manager of the department and an accountant. a. Calculate the LCNRV using the "individual-item" approach. b. Show the journal entry he will need to make in order to write down the ending inventory from cost to NRV. Assume 1o calloturince wery mauk in pricr perieed,
Transcribed Image Text:Question 9 Writing (LCNRV) Taipai Ltd. follows the practice of valuing its inventory at the LCNRV. The following information is available from the company's inventory records as of December 31, 2022 (amounts in thousands). Estimated Completion & Selling Unit Selling Price/Unit Item Quantity Cost Cost/Unit A 1,100 NT$7.50 NT$10.50 NT$1.50 B 800 8.20 9.40 1.30 C 1,000 5.60 7.20 1.75 1,000 3.80 6.30 1.80 E 1,400 6.40 6.70 0.70 Instructions Jay Shin is an accounting clerk in the accounting department of Taipai Co., and he cannot understand how completion and selling costs affect the determination of net realizable value. Jay is very confused, and he is the one who records inventory purchases and calculates ending inventory. You are the manager of the department and an accountant. a. Calculate the LCNRV using the "individual-item" approach. b. Show the journal entry he will need to make in order to write down the ending inventory from cost to NRV. Assume 1o calloturince wery mauk in pricr perieed,
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