Carla Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homes and condominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31, 2020. Jim Alcide, controller for Carla, has gathered the following data concerning inventory. At May 31, 2020, the balance in Carla's Raw Materials Inventory account was $505,920, and Allowance to Reduce Inventory to NRV had a credit balance of $27,630. Alcide summarized the relevant inventory cost and market data at May 31, 2020, in the schedule below. Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Carla's May 31, 2020, financial statements for inventory under the LCNRV rule as applied to each item in inventory. Devereaux expressed concern over departing from the historical cost principle. Aluminum siding Cedar shake siding Louvered glass doors Thermal windows Total Cost Sales Price Net Realizable Value $86,800 $69,440 106,640 105,152 208,692 173,600 $556,884 138,880 173,600 $505,920 $79,360 116,560 231,136 191,952 $619,008 Determine the proper balance in Allowance to Reduce Inventory to NRV at May 31, 2020. Balance in the Allowance to Reduce Inventory to NRV $

Name: Carla Home Improvement Company installs replacement siding, windows,
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Carla Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homes andcondominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ended May