Question

The lo g information concerns several of the inventory items at DC'S. 20 boints Net Realizable Value Quantity Unit Cost eBook los Description Department A: Model XP 235 Model XP 376 Model XP 522 Department : Model ZY 114 Model ZY 232 Model ZY 183 $24.40 20.25 21.50 90 $ 23.10 26.50 22.85 Print 76.50 101.50 146.50 76.50 97.50 References 1. Determine the amount of inventory to be reported on the financial statements using the lower of cost or net realizable value method of valuation under lower of cost or net realizable value for each item separately. 2. Determine the amount of inventory to be reported on the financial statements using the lower of cost or net realizable value method of valuation under lower of total cost or total net realizable value. 3. Determine the amount of Inventory to be reported on the financial statements using the lower of cost or net realizable value method of valuation under lower of total cost or total net realizable value by department (Round your answer to 2 decimal places.) Inventory valuation

Answer 1

1) Valuation of Inventory under Lower of Cost or Net Realizable Value for each item separately: Particulars Quanity Unit Cost Total Cost Net Realizable Value Per Unit Total Net Realizable Value Value Considered For Inventory Valuation (Lower of Cost or NRV) Department A: Model XP 235 24.40 1,952.00 23.10 1,848.00 1,848.00 Model XP 376 105 28.25 2,966.25 26.50 2,782.50 2,782.50 Model XP 522 1,935.00 22.85 2,056.50 1,935.00 Department B: Model ZY 114 76.50 3,442.50 76.50 3,442.50 3,442.50 Model ZY 232 101.50 5,481.00 97.50 5,265.00 5,265.00 Model ZY 183 146.50 6,153.00 143.80 6,039.60 6,039.60 21.50 Total Value of Inventory to be reported in Financial Statement 21,312.60

2) Valuation of Inventory under Lower of Cost or Net Realizable Value of all items: Quanity Unit Cost Total Cost Net Realizable Value Per Unit Total Net Realizable Value 80 24.40 28.25 21.50 1,952.00 2,966.25 1,935.00 23.10 26.50 22.85 1,848.00 2,782.50 2,056.50 Particulars Department A: Model XP 235 Model XP 376 Model XP 522 Department B: Model ZY 114 Model ZY 232 Model ZY 183 Total 76.50 101.50 146.50 3,442.50 5,481.00 6,153.00 21,929.75 76.50 97.50 143.80 3,442.50 5,265.00 6,039.60 21,434.10 421 Total Value of Inventory to be reported in Financial Statement 21,434.10 (lower of Cost or NRV of all items)

3) Valuation of Inventory under Lower of Cost or Net Realizable Value by department wise: Quanity Unit Cost Total Cost Net Realizable Value Per Unit Total Net Realizable Value Value Considered For Inventory Valuation (Lower of Cost or NRV) Particulars Department A: Model XP 235 Model XP 376 Model XP 522 24.40 28.25 21.50 1,952.00 2,966.25 1,935.00 23.10 26.50 22.85 1,848.00 2,782.50 2,056.50 Total(A) 6,853.25 6,687.00 6,687.00 Department B: Model ZY 114 Model ZY 232 Model ZY 183 76.50 101.50 146.50 3,442.50 5,481.00 6,153.00 76.50 97.50 143.80 3,442.50 5,265.00 6,039.60 42 Total(B) 15,076.50 14,747.10 14,747.10 Total(A+B) 21,434.10 Total Value of Inventory to be reported in Financial Statements 21,434.10