476 Chapter 9 Inventories: Additional Valuation Issues EXERCISES E9-1 LO1 EXCEL

Question

476 Chapter 9 Inventories: Additional Valuation Issues EXERCISES E9-1 LO1 EXCEL LCNRV) The inventory of Oheto Company on December 31, 2017, consists of the following item E9-1 (LO1) EXCEL (LCNRV) The inventory of Oheto Company on Cost per Unit $ 95 60 80 170 Net Realizable Value $100 52 76 180 208 Part 110 Quantity 112 113 120 121 122 1,000 500 200 400 1,600 300 16 240 Part No. 121 is obsolete and has a realizable value of $1 each as scrap. Instructions 1. Determine the inventory as of December 31, 2017, by the LCNRV method, applying this method to each item 2. Determine the inventory by the LCNRV method, applying the method to the total of the inventory

Explanation / Answer

1. Determine inventory value by LCNRV method applying this method to each item :

so Under LCNRV method inventory value is $335100

2) Determine inventory value apply the total of inventory method :

so total inventory value is $341300

Part Quantity Cost per unit Net realizable value Inventory value under LCNRV metho 110 600 95 100 57000 111 1000 60 52 52000 112 500 80 76 38000 113 200 170 180 34000 120 400 205 208 82000 121 1600 16 1 1600 122 300 240 235 70500 Total 335100

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