The inventory of Oriole Company on December 31, 2017, consists of the following

Question

The inventory of Oriole Company on December 31, 2017, consists of the following items. Part Quantity Cost per Unlt 110 Net Realizable Value 112 113 120 121a 122 550 1,060 530 180 400 1,700 320 $104 65 87 185 223 17 262 $109 57 83 196 227 256 Part No. 121 is obsolete and has a realizable value of $1 each as scrap. (a) Determine the inventory as of December 31, 2017, by the LCNRV method, applying this method to each item. Inventory as of December 31, 2017 (b) Determine the inventory by the LCNRV method, applying the method to the total of the inventory. Inventory as of December 31, 2017

Explanation / Answer

(a) Inventory as of December 31, 2017 by the LCNRV method, applying this method to each item.

Inventory as of December 31, 2017 = 909

(b) Inventory by the LCNRV method, applying the method to the total of the inventory.

Inventory as of December 31, 2017 = 929 (lower of 943 and 929).

Part Quantity Cost per unit Net realizable value LCNRV 110 550 104 109 104 111 1,060 65 57 57 112 530 87 83 83 113 180 185 196 185 120 400 223 227 223 121a 1,700 17 1 1 122 320 262 256 256 Total 943 929 909

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