Exercise 9-2 Headland Company uses the LCNRV method, on an individual-item basis
ID: 2515488 • Letter: E
Question
Exercise 9-2
Headland 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
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
Estimated selling price $124 $113 $98 $93 $113 $93 Cost 77 82 82 82 52 37 Cost to complete 31 31 26 36 31 31 Selling costs 10 19 10 21 10 21Explanation / Answer
Net realizable value= Selling price -Cost to sell -Cost to complete Item D Item E Item F Item G Item H Item I Cost 77 82 82 82 52 37 Net realizable value 83 63 62 36 72 41 Carrying value 77 63 62 36 52 37
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.