Presented below is information related to Lush Inc’s inventory: Determine the following: a) the net realizable value for each item, and b) The carrying value of each item under LCNRV.

Q: Can you explain in detail how you got the Inventory Remaining(units) and the total Inventory…

A: Inventory valuation refers to the process of assigning a monetary value to the inventory of a…

Q: How significant is the inventory as a percentage of total assets? Please answer it in detail and in…

A: Inventory is typically considered an important component of total assets for many businesses, as it…

Q: Under the weighted-average method, the ending inventory is:

A: Under weighted average cost the average cost per unit change after every purchase or sale . and  the…

Q: Describe implications of valuing inventory at net realizable value for financial statementsand…

A: Net realizable value means the value at which the inventory can be sold in the market reduced by the…

Q: At what amount will the inventory and cost of goods sold amounts be reported on the financial…

A: As per the accounting standards, the closing inventory must be reported at lower of cost or net…

Q: Inventory turnover is computed by dividing cost of goods sold by O 2x (ending inventory + beginning…

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Q: On the basis of the following data: Product InventoryQuantity Cost perUnit Market Value per…

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Q: Rank the following inventory methods in terms of their record-keeping cost.  For answer choices, the…

A: LIFO stands for the last in first out, it is a method of valuing the inventory which the company is…

Q: Briefly explain the usefulness of the inventory figure resulting from the application of lower of…

A: Net Realizable Value(NRV) refers to the inventory value which a business entity can realize from…

Q: Costs to be capitalized in the inventory account include which of the following?   a. Cost of the…

A: Introduction:-. Inventory account shown on the balance sheet under current assets section.…

Q: Explain the four GAAP inventory methods and state which is the most accurate.  Explain which will…

A: Inventory Valuation:   The valuation of merchandise inventory figure depends on the quantity of…

Q: Which of the following inventory cost flow assumptions produces the same ending inventory values…

A: Periodic Inventory System : In periodic inventory system ending balance of inventory will be updated…

Q: The inventory that continually discloses the amount of inventory on hand is called:   a) specific…

A: a) Under specific identification method, inventory is counted at the end of the period physically…

Q: Which are the three types of inventory cost reflected in the balance sheet?

A: Value of Inventory that shows under the asset side of the balance sheet comprises of several…

Q: The inventory costinf method that best matches current costs with the current revenues is the 1)…

A: The objective of the question is to identify the inventory costing method that best matches current…

Q: Determine the value of the inventory at the lower of cost or market. Apply lower of cost or market…

A: Lower of Cost per Unit or Market Value per Unit As the name saying, we record inventory on lower of…

Q: 1. Explain the effect of each inventory cost flow method on the company's net income 2. Recommed one…

A: There are primarily four type of inventory cost method- 1. First in first out method2. Last in first…

Q: Which method results in a balance sheet valuation of inventory method farthest away from its…

A: The method that results in a balance sheet valuation of inventory farthest away from its economic…

Q: . Which of the following figures from a firm’s financial statements should be used as itsflow rate…

A: In the above question we have asked about inventory turns which is as below.

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.