Exercise 9-3 Splish Company follows the practice of pricing its inventory at LCN

Question

Exercise 9-3

Splish Company follows the practice of pricing its inventory at LCNRV, on an individual-item basis.

Item No.

Quantity

Cost
per Unit

Estimated
Selling Price

Cost to Complete
and Sell

From the information above, determine the amount of Splish Company inventory.

Item No.

Quantity

Cost
per Unit

Estimated
Selling Price

Cost to Complete
and Sell

1320 1,900 $3.94 $5.54 $1.97 1333 1,600 3.32 4.18 1.23 1426 1,500 5.54 6.15 1.72 1437 1,700 4.43 3.94 1.66 1510 1,400 2.77 4.00 1.72 1522 1,200 3.69 4.80 0.98 1573 3,700 2.21 3.08 1.48 1626 1,700 5.78 7.38 1.85

Explanation / Answer

Calculate ending inventory under LCNRV method :

The amount of Splish Company’s inventory $44965

Item No Unit Cost NRV value under LCNRV Ending inventory under LCNRV 1320 1900 3.94 3.57 3.57 6783 1333 1600 3.32 2.95 2.95 4720 1426 1500 5.54 4.43 4.43 6645 1437 1700 4.43 2.28 2.28 3876 1510 1400 2.77 2.28 2.28 3192 1522 1200 3.69 3.82 3.69 4428 1573 3700 2.21 1.60 1.60 5920 1626 1700 5.78 5.53 5.53 9401 Total 44965

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