1.

2.

3.

4.

Lower-of-Cost-or-Net Realizable Value Method The Venner Company had the following inventory at year-end: Unit Price Net Realizable Quantity Cost Value Fans Model X1 300 $88 $89 Model X2 250 92 94 Model X3 400 99 96 Heaters 500 94 98 Model B7 Model B8 290 105 102 Model B9 100 111 108 Required Determine the value of ending inventory after applying the lower-of-cost-or-net realizable value method to each item of inventory. Applying the lower-of-cost-or-net realizable value method to each item of the inventory results in an ending inventory amount of $ 0 Lower-of-Cost-or-Net Realizable Value Method The following data refer to the Flemming Company's ending inventory: Net Item Unit Realizable Code Quantity Cost Value ABX 80 $60 $65 TYG 150 50 52 JIL 175 38 35 GGH 90 54 48 Calculate the value of the company's ending inventory by using the lower-of-cost-or-net realizable value applied to each item of inventory. Ending inventory computed by applying the lower-of-cost-or-net realizable value to each item of inventory is $ 0 Inventory Turnover and Days' Sales in Inventory The Eastern Corporation installed a new inventory management system at the beginning of 2012. Shown below are data from the company's accounting records as reported by the new system: 2012 2013 Sales Revenue 23,000,000 25,000,000 Cost of goods sold 13,000,000 13,900,000 Beginning inventory 7,500,000 7,530,000 Ending inventory 7,530,000 7,600,000 Calculate the company's (a) inventory turnover and (b) days' sales in inventory for 2012 and 2013. Round your answers to two decimal points. HINT: Use your rounded answers for inventory turnover to calculate days' sales in inventory. 2012 2013 0 0 Inventory turnover Days' sales in inventory 0 0 Lower-of-Cost-or-Net Realizable Value Method The Claremont Company's ending inventory is composed of 50 units that had cost $40 each and 100 units that had cost $35 each. If all 150 units have an NRV of $36 each, what value should be assigned to the company's ending inventory assuming that it applies lower-of-cost-or-net realizable value on a group-wise basis? $ 0