H.T. Tan Company is preparing the annual financial statements dated December 31 of the current year. Ending inventory information about the five major items stocked for regular sale follows: ENDING INVENTORY, CURRENT YEAR Item ABCDE Quantity on Hand 68 98 28 88 368 Unit Cost When Acquired (FIFO) Net Realizable Value (Market) at Year-End $ 19 $ 22 47 37 59 55 37 32 12 17 Required: Compute the valuation that should be used for the current year ending inventory using lower of cost or net realizable value applied on an item-by-item basis. Total Net Value Lower of Cost or NRV Item Quantity Total Cost Realizable A 68 B 98 CDE 28 D 88 368 Total $ 0 $ $ 0
H.T. Tan Company is preparing the annual financial statements dated December 31 of the current year. Ending inventory information about the five major items stocked for regular sale follows: ENDING INVENTORY, CURRENT YEAR Item ABCDE Quantity on Hand 68 98 28 88 368 Unit Cost When Acquired (FIFO) Net Realizable Value (Market) at Year-End $ 19 $ 22 47 37 59 55 37 32 12 17 Required: Compute the valuation that should be used for the current year ending inventory using lower of cost or net realizable value applied on an item-by-item basis. Total Net Value Lower of Cost or NRV Item Quantity Total Cost Realizable A 68 B 98 CDE 28 D 88 368 Total $ 0 $ $ 0
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter6: Receivables And Inventories
Section: Chapter Questions
Problem 6.4.4P: Inventory by three cost flow methods Details regarding the inventory of appliances on January 1,...
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