The inventory of Oheto Company on December 31, 2020, consists of the following items. Part Quantity Cost per Unit Net Realizable Value 110 6000 $ 95000 $10000000 111 1,0000 60000 5200000 112 5000 80000 7600000 113 2000 170000 18000000 120 4000 205000 20800000 121a 1,6000 16000 100000 122 3000 240000 23500000 aPart No. 121 is obsolete and has a realizable value of $1 each as scrap. Instructions a. Determine the inventory as of December 31, 2020, by the LCNRV method, applying this method to each item. b. Determine the inventory by the LCNRV method, applying the method to the total of the inventory.
The inventory of Oheto Company on December 31, 2020, consists of the following items. Part Quantity Cost per Unit Net Realizable Value 110 6000 $ 95000 $10000000 111 1,0000 60000 5200000 112 5000 80000 7600000 113 2000 170000 18000000 120 4000 205000 20800000 121a 1,6000 16000 100000 122 3000 240000 23500000 aPart No. 121 is obsolete and has a realizable value of $1 each as scrap. Instructions a. Determine the inventory as of December 31, 2020, by the LCNRV method, applying this method to each item. b. Determine the inventory by the LCNRV method, applying the method to the total of the inventory.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The inventory of Oheto Company on December 31, 2020, consists of the following items.
| Part |
Quantity
|
Cost per Unit
|
Net Realizable Value
|
| 110 |
6000
|
$ 95000
|
$10000000
|
| 111 |
1,0000
|
60000
|
5200000
|
| 112 |
5000
|
80000
|
7600000
|
| 113 |
2000
|
170000
|
18000000
|
| 120 |
4000
|
205000
|
20800000
|
| 121a |
1,6000
|
16000
|
100000
|
| 122 |
3000
|
240000
|
23500000
|
| aPart No. 121 is obsolete and has a realizable value of $1 each as scrap. |
Instructions
a. Determine the inventory as of December 31, 2020, by the LCNRV method, applying this method to each item.
b. Determine the inventory by the LCNRV method, applying the method to the total of the inventory.
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