Question

Brief Exercise 9-02 Waterway Corporation has the following four items in its ending inventory. Item Jokers Penguins Riddlers Scarecrows Cost $2,760 6,900 6,072 4,416 Net Realizable Value (NRV) $2,898 6,831 6,383 5,285 Your answer is correct. Determine the following the LCNRV for each item. Item LCNRV Jokers 2760 Penguins 6831 6072 Riddlers Scarecrows 4 416

Answer 1

1)	LCNRV(Lower of Cost or Net Reliasable Value)
				In $
	Item	Cost	Net Realisable Value	LCNRV
	Jokers	2,760	2,898	2,760
	Penguins	6,900	6,831	6,831
	Riddlers	6,072	6,383	6,072
	Scarecrows	4,416	5,285	4,416
	Total			20,079
2)	Amount of Write-Down Using LCNRV(Lower of Cost or Net Reliasable Value) method
		In $
	Item	Write Down
	Jokers	-
	Penguins	69
	Riddlers	-
	Scarecrows	-
	Total	69
3)	Total category of LCNRV evaluation (Lower of Cost or Net Reliasable Value)
			In $
	Total category LCNRV		69