Exercise 9-2 Ayayai Company uses the LCNRV
method, on an individual-item basis, in pricing its inventory
items. The inventory at December 31, 2017, consists of products D,
E, F, G, H, and I. Relevant per unit data for these products appear
below. Item D Item E Item F Item G Item H Item I Estimated selling
price $128 $118 $102 $96 $118 $96 Cost 80 86 86 86 54 39 Cost to
complete 32 32 27 37 32 32 Selling costs 11 19 11 21 11 21 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. Item D $ Item E $ Item F $ Item G $ Item H $ Item I
$
Solution
Item D | $ 80.00 |
Item E | $ 67.00 |
Item F | $ 64.00 |
Item G | $ 38.00 |
Item H | $ 54.00 |
Item I | $ 39.00 |
Working
Item D | Item E | Item F | Item G | Item H | Item I | |
Selling price (A) | $ 128.00 | $ 118.00 | $ 102.00 | $ 96.00 | $ 118.00 | $ 96.00 |
Cost to complete (B) | $ 32.00 | $ 32.00 | $ 27.00 | $ 37.00 | $ 32.00 | $ 32.00 |
Selling cost (C ) | $ 11.00 | $ 19.00 | $ 11.00 | $ 21.00 | $ 11.00 | $ 21.00 |
Net realizable value [A-(B+C)] | $ 85.00 | $ 67.00 | $ 64.00 | $ 38.00 | $ 75.00 | $ 43.00 |
Cost (D) | $ 80.00 | $ 86.00 | $ 86.00 | $ 86.00 | $ 54.00 | $ 39.00 |
Lower of cost of NRV | $ 80.00 | $ 67.00 | $ 64.00 | $ 38.00 | $ 54.00 | $ 39.00 |
Exercise 9-2 Ayayai Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inve...
Kingbird Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2017, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Item D Item E Item F Item G Item H Item I Estimated selling price $130 $119 $103 $97 $119 $97 Cost 81 86 86 86 54 39 Cost to complete 32 32 27 38 32 32 Selling costs 11...
Marigold Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2020, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Item D Item E Item F Item G Item H Item I $126 $116 $100 $95 $116 $95 Estimated selling price Cost 79 84 84 53 38 Cost to complete 32 32 26 32 32 Selling costs 19 21 21...
Concord Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2020, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Item D Item E Item F Item G Item H Item I Estimated selling price $127 $117 $101 $95 $117 $95 Cost 80 85 85 85 53 38 Cost to complete 32 32 27 37 32 32 Selling costs 11...
Exercise 9-2
Ivanhoe Company uses the LCNRV method, on an individual-item
basis, in pricing its inventory items. The inventory at December
31, 2017, consists of products D, E, F, G, H, and I. Relevant per
unit data for these products appear below.
Item D
Item E
Item F
Item G
Item H
Item I
Estimated selling price
$144
$132
$114
$108
$132
$108
Cost
90
96
96
96
60
43
Cost to complete
36
36
30
42
36
36
Selling...
Exercise 9-02 Concord Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2020, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Item D Item E Item F Item H Item I $95 $127 $101 80 85 Estimated selling price Cost Cost to complete Selling costs 38 Item G $95 85 37 21 $117 85 32 19 $117 53 32...
Buffalo Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2017, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Exercise 9-2 Item D ItemE Item F Item G Item H Item I 149 $136 $118 $112 $136 $112 Estimated selling price 93 37 12 52 37 12 45 37 25 31 43 25 37 Cost to complete 12 Selling...
Coronado Company uses the LCNRV method, on an individual-item
basis, in pricing its inventory items. The inventory at December
31, 2017, consists of products D, E, F, G, H, and I. Relevant per
unit data for these products appear below.
Item D
Item E
Item F
Item G
Item H
Item I
Estimated selling price
$133
$122
$105
$100
$122
$100
Cost
83
89
89
89
56
40
Cost to complete
33
33
28
39
33
33
Selling costs
11...
Exercise 9-2 Flounder Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2017, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Item D Item E Item F Item G Item H Item I Estimated selling price $140 $129 $111 $105 $129 $105 Cost 88 94 94 94 59 42 Cost to complete 35 35 29 41 35 35 Selling...
Exercise 9-2 Flounder Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2017, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Item D Item E Item F Item G Item H Item I Estimated selling price $140 $129 $111 $105 $129 $105 Cost 88 94 94 94 59 42 Cost to complete 35 35 29 41 35 35 Selling...
Vaughn Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2020, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Item D Item E Item F Item G Item H Item I Estimated selling price $139 $128 $110 $104 $128 $104 Cost 87 93 93 93 58 42 Cost to complete 35 35 29 41 35 35 Selling costs 12...