Valley Inc. has compiled the following information concerning items in its inventory at December 31: Item Quantity Cost per Unit Net Realizable Value (NRV)per unit $50 A 100 $45 В 80 160 120 C 50 100 110 Required: The carrying amount of the total inventory of Valley Inc. using the lower of cost or net realizable value ( LCNRV) rule applied on an item by item basis is: The loss due to inventory write down to LCNRV is:
Valley Inc. has compiled the following information concerning items in its inventory at December 31: Item Quantity Cost per Unit Net Realizable Value (NRV)per unit $50 A 100 $45 В 80 160 120 C 50 100 110 Required: The carrying amount of the total inventory of Valley Inc. using the lower of cost or net realizable value ( LCNRV) rule applied on an item by item basis is: The loss due to inventory write down to LCNRV is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Valley Inc. has compiled the following information concerning items in its inventory at December 31:
Item
Quantity
Cost per Unit
Net Realizable Value
(NRV)per unit
$50
A
100
$45
В
80
160
120
C
50
100
110
Required:
The carrying amount of the total inventory of Valley Inc. using the lower of cost or net
realizable value ( LCNRV) rule applied on an item by item basis is:
The loss due to inventory write down to LCNRV is:
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