Winners Inc. has three items in its ending inventory. The company's inventory information is presented below. Item: Quantity: Cost per Selling Cost to Cost to Cost to Item: Price: Complete: Sell: Transport: TB 2,400 $3.30 $4.10 $0.95 $0.50 $0.05 VW 1,200 $6.60 $9.20 $1.40 $0.85 $0.10 RG 1,900 $4.25 $6.25 $1.25 $0.65 $0.20 Required: Using the lower-of-cost-or-net realizable value (LCNRV) approach for Winners Inc., calculate the following values. a. Determine the LCNRV for item TB. type your answer... b. Determine the LCNRV for item VW. type your answer... c. Determine the LCNRV for item RG.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Winners Inc. has three items in its ending inventory. The company's inventory information is presented below.
Item:
Quantity:
Cost per
Selling
Cost to
Cost to
Cost to
Item:
Price:
Complete:
Sell:
Transport:
TB
2,400
$3.30
$4.10
$0.95
$0.50
$0.05
VW
1,200
$6.60
$9.20
$1.40
$0.85
$0.10
RG
1,900
$4.25
$6.25
$1.25
$0.65
$0.20
Required: Using the lower-of-cost-or-net realizable value (LCNRV) approach for Winners Inc., calculate the following values.
a. Determine the LCNRV for item TB.
type your answer...
b. Determine the LCNRV for item VW.
type your answer...
c. Determine the LCNRV for item RG.
type your answer...
d. Determine the final inventory value using a total category LNCRV method.
type your answer...
Transcribed Image Text:Winners Inc. has three items in its ending inventory. The company's inventory information is presented below. Item: Quantity: Cost per Selling Cost to Cost to Cost to Item: Price: Complete: Sell: Transport: TB 2,400 $3.30 $4.10 $0.95 $0.50 $0.05 VW 1,200 $6.60 $9.20 $1.40 $0.85 $0.10 RG 1,900 $4.25 $6.25 $1.25 $0.65 $0.20 Required: Using the lower-of-cost-or-net realizable value (LCNRV) approach for Winners Inc., calculate the following values. a. Determine the LCNRV for item TB. type your answer... b. Determine the LCNRV for item VW. type your answer... c. Determine the LCNRV for item RG. type your answer... d. Determine the final inventory value using a total category LNCRV method. type your answer...
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