A company has three products in its ending inventory. Specific per unit data at the end of the year for each of the products are asfollows:CostSelling priceCosts to sellProduct123Product 1 Product 2 Product 3$ 24$ 94521321048Required:What unit values should the company use for each of its products when applying the lower of cost or net realizable value (LCNRV) ruleto ending inventory?Cost$ 548214NRVPer Unit InventoryValue

1. While valuing the closing inventory, it should be valued at cost or Net realisable value (NRV)…

Answered: Required: What unit values should the…

Required: What unit values should the company use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule to ending inventory?

SWFT Individual Income Taxes

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Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 67P

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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

A company has three products in its ending inventory. Specific per unit data at the end of the year for each of the products are as
follows:
Cost
Selling price
Costs to sell
Product
1
2
3
Product 1 Product 2 Product 3
$ 24
$ 94
52
132
10
48
Required:
What unit values should the company use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule
to ending inventory?
Cost
$ 54
82
14
NRV
Per Unit Inventory
Value

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