? €1 ad0 Amazon.com: Suits SegwGraded WP HW#7Ch9) WleyPLUS OBeuenweplus.comdugen

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? €1 ad0 Amazon.com: Suits SegwGraded WP HW#7Ch9) WleyPLUS OBeuenweplus.comdugenviti/man WileyPLUS 16e vanhoe Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homes and condominium annual financial statements for the fiscal year ended May 31, 2017. im Alcide, controller for Ivanhoe, has gathered the follawing data concerning invertory complexes. The company is in the process of preparing its At May 31, 2017, the balance in ven e's Ra M terials Inventory account was?69,200 and Allo ante to Reduce inventory to NRV had a eredit balanceofse 40 cost and market data at May 31, 2017, in the schedule below. ace e su manos the em a ti e on Aleide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Ivanhoe's May 31, 2017, inancial statements for Inventory undar the LCNRV rule as applied to aach item in inventory. Devereaux expressed concern over departing from the historical cost principle. CostSales Price Net Realizable Value Aluminum siding Cedar shake siding 98,9OD 08,100 Louver?d glass doors 128,800 Thermal windows $73,600 193,545 161,000 516,465 214,360 $574,08o Review Results by Study Qbiective Determine the proper balance in Allowance to Reduce Inventory to NRV at May 31, 2017 Balance in the Allowance to Reduce Inventory to NRV NRV.(Enter loss using of the gain or loss that would b? recorded {using the loss method) due to the change in Allowance to Raduca Inventory to For the fiscal year ended May 31, 2017, determine the amount either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) The amount of the gain (loss) s Question Attempts: 0 of 6 used SAVE FOR LATER

Explanation / Answer

1

Lower of cost or NRV

Cost

NRV

LCNRV

Aluminium siding

$80,500

$64,400

$64,400

Cedar shade siding

$98,900

$97,520

$97,520

Loucered glass doors

$128,800

$193,545

$128,800

Thermal windows

$161,000

$161,000

$161,000

Total

$451,720

Less: inventory balance

$469,200

Balance to be reduced

$17,480

Ans

Balance in allowance to reduce inventory to NRV = $17,480

2

The amount of gain or loss

Balance in allowance to reduce inventory as on 31st march 2017

$27,400

Less: Balance allowance to reduce inventory

$17,480

Gain on change in allowance account

$9,920

1

Lower of cost or NRV

Cost

NRV

LCNRV

Aluminium siding

$80,500

$64,400

$64,400

Cedar shade siding

$98,900

$97,520

$97,520

Loucered glass doors

$128,800

$193,545

$128,800

Thermal windows

$161,000

$161,000

$161,000

Total

$451,720

Less: inventory balance

$469,200

Balance to be reduced

$17,480

Ans

Balance in allowance to reduce inventory to NRV = $17,480

2

The amount of gain or loss

Balance in allowance to reduce inventory as on 31st march 2017

$27,400

Less: Balance allowance to reduce inventory

$17,480

Gain on change in allowance account

$9,920

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