The following information pertains to the physical inventory of Electronics Unlimited taken at December 31:Per UnitUnits onProductHandCostNRVAudio equipment:Wireless audio receivers344$181$192Touchscreen MP3 players259216196Audio mixers325170186Audio standsVideo equipment:Televisions20396784792912455GB video cards290176164Satellite video recorders211611640Car equipment:GPS navigators184138164Double-DIN Car Deck with iPod/iPhone Control169191206and Aux InputRequired:1. Calculate the LCNRV for the:a. inventory by major groupb. inventory, applied separately to each product.4Per UnitLCNRV applied to:a.InventoryItemsUnits on HandCostNRVTotal costTotal NRVMajorGroupAudio equipmentWireless audio receivers344 S181 S192Touchscreen MP3 players259216196325170186Audio mixersb.Separatelyto EachProduct

Answered: Image /qna-images/answer/2ffadc37-95ad-46ae-885e-1a0289cb010c.jpg

Answered: Required: 1. Calculate the LCNRV for…

Required: 1. Calculate the LCNRV for the: a. inventory by major group b. inventory, applied separately to each product. 4

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Under the dollar-value LIFO method, increases and decreases in an inventory pool are determined and…

A: Lets understand the basics. In dollar value LIFO method, inflation adjustment is considered to…

Q: What are the two types of inventory accounting systems? Briefly describe each.

A: Inventory Accounting Systems: Merchandise operation is an operation undertaken by the company to…

Q: calculate cost of goods sold, gross margin and ending inventory using i) FIFO and ii) Weighted -…

A: The objective of this question is to calculate the cost of goods sold (COGS), gross margin, and…

Q: In the financial accounting for inventory, what is a cost flow assumption?

A: Accounting for inventories is a subset of accounting that deals with the value of inventoried assets…

Q: The three most common inventory cost flow methods are a.FIFO, LIFO, and weighted average cost.…

A: The inventory valuation method is used by the management to evaluate the closing inventory and cost…

Q: Under the weighted-average method, the ending inventory is:

A: Under weighted average cost the average cost per unit change after every purchase or sale . and the…

Q: Under which inventory cost flow assumption is the oldest cost of inventory items likely to remain on…

A: Correct option is LIFO

Q: inventory cOsting method but did not compare the cost of its ending inventory to its market value…

A: Last in first out (LIFO) which reflects the process of determining the inventory cost on the basis…

Q: Continuous determination of inventory ending value and gross profits are available in one of the…

A: The inventory valuation is performed differently in different systems.

Q: How to determine the inventory cost using the fifo and lifo

A: Inventory cost is the cost to incur handling charges,maintaining cost and storage cost with…

Q: How do you calculate inventory turnover ratio

A: Inventory turnover ratio indicates how fast a firm converting its inventory into the cost of goods…

Q: Suppose Fine Chocolates Co. estimates bad debt under the aging method. Before adjusting entries at…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Inventory turnover is computed by dividing cost of goods sold by O 2x (ending inventory + beginning…

Q: Explain the four GAAP inventory methods and state which is the most accurate. Explain which will…

A: Inventory Valuation: The valuation of merchandise inventory figure depends on the quantity of…

Q: HOW DO YOU GET THE REMAING TOTAL BALANCE OF INVENTORY COST?

A: The question deals with inventory valuation at LIFO method. LIFO means Last in First out. In this…

Q: Compute the inventory turnover. (4) Inventory Turnover Choose Numerator: Choose Denominator:…

A: Inventory Turnover =COGS/Average Inventory Inventory Turnover is Ratio that measure how many times…

Q: The most common approach to implementing the lower of cost or market rule for inventory valuation is…

A: Inventory means the stock of goods in which the businessmen deals. Inventory is always valued at…

Q: Under which of the following inventory costing methodologies can lower-of-cost-or-market be use

A: Inventory, based on its intended use and where it is in the manufacturing or distribution process.…

Q: 54. To calculate a beginning or ending inventory ($ amount): The appropriate Inventory quantity x…

A: Truethe formula provided is correct for calculating the value of inventory. Multiply the quantity of…

Q: Which are the three types of inventory cost reflected in the balance sheet?

A: Value of Inventory that shows under the asset side of the balance sheet comprises of several…

Q: Weighted Average Cost (Periodic) Units Cost Goods Available for Sale Cost of Goods Sold Ending…

A: Inventory Valuation: It is an asset held for sale in the ordinary course of business. It is used in…

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

The following information pertains to the physical inventory of Electronics Unlimited taken at December 31:
Per Unit
Units on
Product
Hand
Cost
NRV
Audio equipment:
Wireless audio receivers
344
$181
$192
Touchscreen MP3 players
259
216
196
Audio mixers
325
170
186
Audio stands
Video equipment:
Televisions
203
96
78
479
291
245
5GB video cards
290
176
164
Satellite video recorders
211
611
640
Car equipment:
GPS navigators
184
138
164
Double-DIN Car Deck with iPod/iPhone Control
169
191
206
and Aux Input
Required:
1. Calculate the LCNRV for the:
a. inventory by major group
b. inventory, applied separately to each product.
4
Per Unit
LCNRV applied to:
a.
Inventory
Items
Units on Hand
Cost
NRV
Total cost
Total NRV
Major
Group
Audio equipment
Wireless audio receivers
344 S
181 S
192
Touchscreen MP3 players
259
216
196
325
170
186
Audio mixers
b.
Separately
to Each
Product

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Solution

VIEW

Step 2: Workings

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

1a The inventory cost flow method that reports the earliest costs in ending inventory is a. LIFO b. weighted average cost c. FIFO d. specific identification
Which method results in a balance sheet valuation of inventory method farthest away from its economic value? Select one: a. FIFO b. LIFO c. Weighted Average PreviousSave AnswersNext
Which inventory method is least likely to be used under IFRS? A . First in, fi rst out (FIFO).
Identify each item as describing the FIFO method, LIFO method, or average cost method of inventory valuation. A. Involves calculating the total number of units in the warehouse FIFO LIFO Average cost B. To determine cost of goods sold, begin with the earliest goods acquired FIFO LIFO Average cost C. To determine merchandise inventory balance, begin with the earliest goods acquired FIFO LIFO Average cost
Identify inventory classifications and different inventory systems.
Which of the following items are included when calculating the carrying cost of inventory? (Select all that apply.) ✔ warehousing costs manufacturing costs procurement costs O financing costs
2.The __________ method and the __________ method are the two common approaches to record inventory in financial statements.
The inventory valuation method which assumes that the items purchased first are the first items to be sold is called the _____ method. average costLIFO specific identificationFIFO