The following information pertains to the physical inventory of Electronics Unli
ID: 2437263 • Letter: T
Question
The following information pertains to the physical inventory of Electronics Unlimited taken at December 31:
Per Unit
Required:
1. Calculate the LCNRV:
a. For the inventory by major group
b. For the inventory, applied separately to each product.
2. Prepare the appropriate entry, if any, for 1(a) and 1(b).
Per Unit
Product Units on Hand Cost NRV Audio equipment: Wireless audio receivers 329 $195 $184 Touchscreen MP3 players 244 199 219 Audio mixers 310 189 173 Audio stands 188 81 99 Video equipment: Televisions 464 249 294 1GB video cards 275 167 179 Satellite video recorders 196 609 614 Car audio equipment: GPS navigators 169 167 141 Double-DIN Car Deck with iPod/iPhoneControl & Aux Input 154 209 194
Explanation / Answer
1a) Calculation of Lower of Cost or NRV by Major Group (Amounts in $)
1b) Calculation of Lower of Cost or NRV seperately (Amounts in $)
2) Journal Entry (Amounts in $)
Per Unit Total Cost Product Units on Hand (A) Cost (B) NRV (C) Cost (A*B) NRV (A*C) Lower of Cost or NRV Audio Equipment: Wireless audio receivers 329 195 184 64,155 60,536 Touchscreen MP3 players 244 199 219 48,556 53,436 Audio mixers 310 189 173 58,590 53,630 Audio stands 188 81 99 15,228 18,612 Total Audio Equipments 186,529 186,214 186,214 Video Equipment: Televisions 464 249 294 115,536 136,416 1GB video cards 275 167 179 45,925 49,225 Satellite video recorders 196 609 614 119,364 120,344 Total Video Equipments 280,825 305,985 280,825 Car Audio Equipment: GPS navigators 169 167 141 28,223 23,829 Double-DIN Car Deck with iPod/iPhone Control & Aux Input 154 209 194 32,186 29,876 Total Car Audio Equipments 60,409 53,705 53,705 Total 527,763 520,744Related Questions
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