Exercise 9-2 Headland Company uses the LCNRV method, on an individual-item basis

Question

Exercise 9-2 Headland Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2017, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below Item D Item E Item F Item G Item H Item I $112 82 31 18 $97 82 26 10 $92 82 36 20 $92 37 31 20 $122 Estimated selling price Cost Cost to complete Selling costs $112 51 31 10 31 10 Using the LCNRV rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2017, for each of the inventory items above Item D Item E Item F Item G Item H s Item I Click if you would like to Show Work for this question:

Explanation / Answer

Particulars D E F G H I Cost (A) 77 82 82 82 51 37 Sell Price 122 112 97 92 112 92 Less: cost to complete 31 31 26 36 31 31 Less: selling cost 10 18 10 20 10 20 Net Realisable Value (B) 81 63 61 36 71 41 Cost of Inventory 77 63 61 36 51 37

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.