Question

E93 (LOD) (LONRV) Sodato Company follows the practice of pricing its inventory at LCNRV, on an Qដែលរំងy 20 g 80 , ១ 31 ន 44 50 1522 575 16 Cost per Unit 320 70 4S 16 2. 300 L 4.3 Estimated Selling Price $ 40 340 50 320 3. 3.90 2. 68 Cost to Complete and Sell $1.0 1.00 1.40 1.3S 1,40 0.80 1.20 1.SO 300 1, Instructions From the information above, determine the amoun or to company inventory, \?

please give the explanation too where the number is come.. thankyou

Answer 1

LCNRV means lower of cost of or Net Realizable value (NRV)
NRV=Estimated selling price-Cost to complete and sell
Item No.	Quantity	cost per unit	Estimated selling price	Cost to complete and sell	NRV per unit	Total cost	Total NRV	Amount of inventory
	a	b	c	d	e=c-d	f=a*b	g=a*e	(Lower of f or g)
1320	1200	3.2	4.5	1.6	2.9	3840	3480	3480
1333	900	2.7	3.4	1	2.4	2430	2160	2160
1426	800	4.5	5	1.4	3.6	3600	2880	2880
1437	1000	3.6	3.2	1.35	1.85	3600	1850	1850
1510	700	2.25	3.25	1.4	1.85	1575	1295	1295
1522	500	3	3.9	0.8	3.1	1500	1550	1500
1573	3000	1.8	2.5	1.2	1.3	5400	3900	3900
1626	1000	4.7	6	1.5	4.5	4700	4500	4500
								21565
Amount of inventory=$ 21565