Exercise 9-1 The inventory of Cullumber Company on December 31, 2017, consists o

Question

Exercise 9-1 The inventory of Cullumber Company on December 31, 2017, consists of the following items Net Realizable Value Part Quantity Cost per Unit 110 112 113 120 121a 122 660 1,040 540 210 410 1,700 280 $128 81 108 230 277 $135 70 103 243 281 324 317 a Part No. 121 is obsolete and has a realizable value of $1 each as scrap.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 s (b) Determine the inventory by the LCNRV method, applying the method to the total of the inventory. Inventory as of December 31, 2017 s

Explanation / Answer

Answer:-a)

b)-

Inventory as of December 31, 2017 lower of cost or Net Realizable value ie $474220.

Calculation of closing inventory as of December31,2017 for each item By using Lower of cost or Net Realizable Vaue Method Closing Inventory Part Quantity (a) Cost per unit Net Reliazable value Valued on $ Per unit (b) Amount $ (C=a*b) $ $ 110 660 128 135 Cost 128 84480 111 1040 81 70 Net Reliazable value 70 72800 112 540 108 103 Net Reliazable value 103 55620 113 210 230 243 Cost 230 48300 120 410 277 281 Cost 277 113570 121a 1700 22 1 Net Reliazable value 1 1700 122 280 324 317 Net Reliazable value 317 88760

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