Selling price 2,000,000 3,000,000 Materials and conversion costs 1,500,000 1,800,000 General administration costs 300,000 800,000 Estimated selling costs 600,000 700,000 Required: a. What amount should be reported as inventory using the LCNRV individual approach? b. What amount should be reported as inventory using the LCNRV total approach?

Q: The following data refer to Brompton Company's ending inventory: Item Code Quantity Unit Cost Unit…

A: Here is the step-by-step verification:For each item, select the lower value between the unit cost…

Q: Concord Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an…

A: Inventory Cost :— Inventory costs are the costs to a business associated with holding stock, or…

Q: Give correct solution

A: Cost  Market  Lower of cost or market  Number of units  Total LCM Part A         5.00          4.50…

Q: Crane Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an…

A: Lower-of-cost-or-market = Lower of cost and Net realizable value where, Net realizable value =…

Q: Question: Using weighted average costing method, what is the amount of inventory as of December 31?…

A: Weighted average method can be used to assign cost to ending inventory and sold goods. Under…

Q: Vaughn Company follows the practice of pricing its inventory at LCNRV, on an individual-itern basis.…

A: ANSWERInventory should be valued at lower of cost or Net Realised Value (NRV).NRV = Estimated…

Q: What is the correct answer to question 1 and 2? Provide solution.

A: Computation of net realisable value Selling price - estimated selling cost For X 2,000,000 - 600,000…

Q: Johnson Corporation has the following inventory items: Market/Unit $22 $25 $48 Item ABU А DR Units…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: Oriole Company follows the practice of pricing its inventory at LCNRV, on an individual-item basis.…

A: Inventory valuationInventory valuation method is an accounting practice that is followed by each and…

Q: Bramble Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an…

A: Lower-of-cost-or-market = Lower of cost and Net realizable value where, Net realizable value =…

Q: Note that this was everything given for this particular item.   Use the information below to figure…

A: Inventory valuation is based on the flow of exemption used by the company. There are many methods…

Q: kau.2

A: To determine the amount of Concord Company's inventory, we need to apply the lower of cost or net…

Q: Give answer

A: Step 1: Introduction to the Inventory TechniqueThe lower cost or market (LCNRV) is an inventory…

Q: First purchase Second purchase Third purchase 600 units 700 units 500 units $3.50 unit cost $3.30…

A: Under a specific identification method, the valuation is done at the specific cost at which the…

Q: Winners Inc. has three items in its ending inventory. The company's inventory information is…

A: As per the Cost Concept of Accounting, assets are to be recorded at their cost at the time of…

Q: $3.36     $5.04     $0.39     $1.40   1333   1,500     3.02     2.58     3.92     0.56     0.56…

A: Item No. Quantity Cost per Unit Cost to Replace Estimated Selling Price Cost of Completion and…

Q: Wildhorse Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on…

A: Ending inventory is the entire worth of items or products on hand at the end of a certain accounting…

Q: Consider the following information pertaining to OldWest's inventory: Product Quantity Cost Net…

A: Lets understand the basics. As per IAS "2" inventory needs to be valued at lower of cost or net…

Q: Decker Company has five products in its inventory. Information about ending inventory follows. Unit…

A: LCNRV: The inventory is recorded at the purchase cost initially but, it is adjusted to the lower…

Q: Tatum Company has four products in its inventory. Information about ending inventory is as follows:…

A: Inventory includes all the items, merchandise, and raw materials that are used by the business…

Q: Garcia Company is trying to decide whether to purchase identical inventory from one of the following…

A: Under F.O.B. shipping point, shipping cost is paid by the buyer. Under F.O.B. destination, shipping…

Q: Wildhorse Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on…

A: Inventory Cost:— Inventory costs are the costs to a business associated with holding stock, or money…

Q: Consider the following data Ending inventory at cost --- $115,000 Ending inventory at replacement…

A: The LCM rule is used to determine the value of inventory items. The purpose of the LCM rule is to…

Q: Lower-of-Cost-or-Net Realizable Value Method The following data are taken from the Simpson…

A: Inventory valuationInventory valuation method is an accounting practice that is followed by each and…

Q: Required: Compute the ending inventory al retail and at cost by the conventional retail inventory…

A: To calculate ending inventory at cost we use the cost to retail percentage while in calculating…

Q: Sheridan Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an…

A: Inventory, often known as goods, refers to the items and commodities that a business has on hand in…

Q: 1. Univ Company has the policy of valuing inventory at the lower of cost and NRV. Data pertaining to…

A: Valuation of Inventory is done on lower of Cost or Net Realizable Value.   Calculation of Value of…

Q: Item No. 1320 1333 1426 1437 1510 1522 1573 1626 Quantity 1,500 1,200 1,100 1,300 1,000 800 3.300…

A: The term inventory costs refers to the costs which is associated with the business that are holding…

Q: Crane Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an…

A: Calculating the total inventory value for Crane Company based on the provided information.Here's the…

Q: Byron Company has five products in its inventory and uses the FIFO cost flow assumption. Specific…

A: LCNRV ( Lower of Cost and Net Realizable Value): Generally Accepted Accounting Principles (GAAP)…

Q: Jackson Company had the following ending inventory costs: Product ABU Units on Hand 10 50 35 Unit…

A: LCM is the lower of cost or market value. This rule is usually applied while determining the cost of…

Q: The following information has been extracted from the records of Marie Company about one of its…

A: Inventory methods: Inventory methods are the accounting techniques applied by manufacturing entities…

Q: ABC Inc. has a cost card in relation to an inventory manufactured as follows: > Materials > Storage…

A: Cost of inventory  comprises  of  Purchase  cost  ( including  taxes on  Purchase, transport  costs…

Q: attention over the other. Provide your explanation. P3-2 Odaiba Company classifies Its inventory…

A: ABC system divides products into three categories on the basis of units sold and the cost of…

Q: Tatum Company has four products in its inventory. Information about ending inventory is as follows:…

A: Lower of cost or market value states that business entity should record the inventory at whichever…

Q: Need help

A: To get the total value of the company's ending inventory using the lower of cost or market method,…

Q: The inventory of Royal Decking consisted of five products. Information about ending inventory is as…

A: Lower of Cost or NRV Method (LCNRV)The Lower of Cost or Net Realisable Value (LCNRV) technique is an…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.