Question

Check my we Net Inventory, by Product Category Tools: Per Unit Realizable Quantity Cost value Hammers Saws 120 100 200 $4.00 9.00 1.00 $4.50 8.00 1.60 Paint products: 1-gallon cans Paint brushes 400 120 5.00 3.00 4.00 3.50 Required 1. Determine the carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule is applied to (a) individual products, (b) product categories, and (c) total inventory. 2. Assuming that the company reports an inventory write-down as a line item in the income statement, for each of the LCNRV applications determine the amount of the loss Complete this question by entering your answers in the tabs below Required 1 Required 2 Determine the carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule is applied to (a) individual products, (b) product categories, and (c) total inventory of cost and NRV By By Net Prey 1 of 4 Next

Answer 1

			Net Realizable	By Individual	By Product	By Total
	Product	Cost	Value	Product	Type
	Tools:
	Hammers	480	540	480
	Saws	900	800	800
	Screwdrivers	200	320	200
	Total tools	1580	1660	1480	1580
	Paint Products:
	1-gallon cans	2000	1600	1600
	Paint Brushes	360	420	360
	Total Paint	2360	2020	1960	2020
	Total	3940	3680	3440	3600	3680
a	Individual Product	500
b	Product Categories	340
c	Total Inventory	260