xYour answer is incorrect. Try again Crane Company manufactures desks. Most of t

Question

xYour answer is incorrect. Try again Crane Company manufactures desks. Most of the company's desks are standard models and are sold on the basis of catalog prices. At December 31, 2017, the following finished desks (10 desks in each category) appear in the company's inventory Finished Desks $471 492 52 524 $942 869 84 942 $1,099 1,005 136 1,256 2017 catalog selling price FIFO cost per inventory list 12/31/17 Estimated cost to complete and sell 471 63 565 2018 catalog selling price The 2017 catalog was in effect through November 2017, and the 2018 catalog is effective as of December 1; atalog prices are net of the usual discounts At what amount should each of the four desks appear in the company's December 31, 2017, inventory, assuming that the company has adopted a lower-of-FIFO-cost-or-net realizable value (LCNRV) approach for valuation of nventories on an individual-item basis? tem A 4720 tem B 5020 tem C 8580 tem D 10050

Explanation / Answer

Computation of Inventory Value as LCNRV approach

FIFO cost per unit ($)

A

NRV per unit = 2018,Selling price - Cost to complete ($)

B

LCNRV ($)

C

LCNRV ($)

Note : Question is asking value of each of the four desks & not each category.

Items

FIFO cost per unit ($)

A

NRV per unit = 2018,Selling price - Cost to complete ($)

B

LCNRV ($)

C

Item A 492 524 - 52 =472 472 Item B 471 565- 63 = 502 471 Item C 869 942 - 84 = 858 858 Item D 1,005 1,256 - 136 = 1,120 1,005

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