PLEASE SOLVE THESE QUESTIONS Exercise 9-1 The inventory of Cullumber Company on

Question

PLEASE SOLVE THESE QUESTIONS

Exercise 9-1 The inventory of Cullumber Company on December 31, 2017, consists of the following items Part Quantity 110 Cost per Unit Net Realizable Value 112 113 120 121a 122 540 930 470 180 420 1,700 270 $130 82 110 233 281 $137 71 104 247 285 329 322 a Part No. 121 is obsolete and has a realizable value of $1 each as scrap (a) Determine the inventory as of December 31, 2017, by the LCNRV method, applying this method to each item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

Inventory Cost - 4,33,710

Inventory as per NRV

Inventory - 4,41,690

Part Quantity Cost per Unit Net Realizable Value Cost or NRV (whichever is lower) Inventory Value 110            540            130            137                        130        70,200 111            930               82               71                          71        66,030 112            470            110            104                        104        48,880 113            180            233            247                        233        41,940 120            420            281            285                        281    1,18,020 121         1,700               22                 1                             1          1,700 122            270            329            322                        322        86,940 Total    4,33,710

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