Question

4. Lorrer of Cost or Not Realizable Riegal Company uses the Lower of Cost or Net Realizable Value method, applying this method to each item Tha nventory at December 31, 2017, consists of products D, E, F, G, H, and i. Relevant per unit data for these products appear below Item Estimated seling price $120 $110 $95 $90 $110 $90 Cost to complete Cost 30 30 75 80 8080 50 36 018 10 20 10 20 25 35 30 30 2 Selling costrs Net Realizable Value Inventory Cost Required: Using the LCNRV rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2017, for each of the inventory items above. Computation

Answer 1

			D	E	F	G	H	I
Selling price			120	110	95	90	110	90
Less: selling cost			10	18	10	20	10	20
Less: Coost to complete			30	30	25	35	30	30
Nnet realizable value			80	62	60	35	70	40
Cost			75	80	80	80	50	36
Inventory Cost			75	62	60	35	50	36
(Cost or Net realizable value, whichever is less)