(Inventory LCNRV Computation) 6. Squat Company uses the lower of cost or net realizable value inventory. Data regarding the items in work-in-process inventory are presented below: Product A Product B Historical cost 24,000 18,800 Selling price Estimated cost to complete 36,000 21,800 4,800 3,500 Estimated cost to sell 2,000 1,900 Replacement cost Normal profit margin as a percentage of selling price 20,800 16,800 25% 25% What amount should be reported as ending inventory using the LCNRV individual approach? a. 45,600 b. 40,400 с. 42,800 d. 48,000
(Inventory LCNRV Computation) 6. Squat Company uses the lower of cost or net realizable value inventory. Data regarding the items in work-in-process inventory are presented below: Product A Product B Historical cost 24,000 18,800 Selling price Estimated cost to complete 36,000 21,800 4,800 3,500 Estimated cost to sell 2,000 1,900 Replacement cost Normal profit margin as a percentage of selling price 20,800 16,800 25% 25% What amount should be reported as ending inventory using the LCNRV individual approach? a. 45,600 b. 40,400 с. 42,800 d. 48,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 23CE: Inventory Costing: LIFO Refer to the information for Filimonov Inc. and assume that the company uses...
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