(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
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ISBN:9781337690881
Author:Jay Rich, Jeff Jones
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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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6
(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
Transcribed Image Text:(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
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