Question

HT. Tan Company is preparing the annual financial statements dated December 31 of the current year Ending Inventory information about the five major items stocked for regular sale follows: Item А ENDING INVENTORY, CURRENT YEAR Net Realizable Quantity Unit Cost When Value (Market) on Hand Acquired (FIFO) at Year-End 70 $ 21 524 49 61 B 100 39 370 Required: Compute the valuation that should be used for the current year ending Inventory using lower of cost or net realizable value appiled on an item-by-item basis. Hem Quantity Total Net Total Cost Realizable Value Lower of Cost or NRV $ 1.470 3000 70 5 1.470 1.710 3.000 5130 $ 5.650 S 39 5 15 320

Answer 1

Answer

A B C D 1 Item Quantity Total cost Total NRV Lower of cost or NRV 2 A 70 $ 1,470 $ 1,680 $ 1,470 3 B 100 $ 4,900 $ 3,900 $ 3,900 4c 30 $ 1,830 $ 1,710 $ 1,710 5 D 90 $ 3,510 $ 3,060 $ 3,060 6 E 370 $ 5,180 $ 7,030 $ 5,180 7 Total $ 16,890 $ 17,380 $ 15,320

Calculations:

D 1 2 4 5 А в Item Quantity A 70 B 100 c 30 D 90 370 Total C Total cost Total NRV Lower of cost or NRV =B2*21 =B2*24 =C2 =B3*49 =B3*39 =D3 =B4*61 =B4*57 =D4 =B5*39 =B5*34 =D5 =B6*14 =B6*19 =SUM(C2:C6) =SUM(D2:06) =SUM(E2:E6) 6 =C6 7

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