46240601... 7666f06d94d1f15. "%b9861e605f8205... %a90e0d65e0d577. %e8963c19161e2f5... 896330472b75e... tsfalls crimson. 7 Homework Saved Help Save & E Mondetta Clothing prepared its annual financial statements dated December 31. The company used the FIFO inventory costing method, but it falled to evaluate the net realizable value of its ending inventory. The preliminary income statement follows: 3:17:34 Net Sales Cost of Goods Sold Beginning Inventory Purchases Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Income Tax Expense (408) Net Income $414,000 $ 43,500 270,000 313,500 56,160 257,340 .156,660 91,500 65,160 26.064 $ 49,096 Ook int Assume that you have been asked to restate the financial statements to incorporate LCM/NRV. You have developed the following data relating to the ending inventory: Acquisition Cost Item Per Quantity Unit 2,700 $4.20 1,350 5.40 6,700 2.70 2,700 7.20 11 c D Net Realizable Value per Unit $5.70 2.70 5.70 4.20 Total $11,340 7,290 18,090 19,440 $56,160 Required: 1. Restate the income statement to reflect LCMNRV valuation of the ending Inventory. Apply LCM/NRV on an item-by-item basis. 2. Compare the LCM/NRV effect on each amount that was changed in the preliminary income statement in requirement 1. aw -06c1... Saved Homework Complete this question by entering your answers in the tabs below. Required 1 Required 2 Restate the income statement to reflect LCM/NRV valuation of the ending invent basis. 5 MONDETTA CLOTHING Income Statement (LCM/NRV basis) For the Year Ended December 31 Net Sales $ 414,000 Cost of Goods Sold: Beginning Inventory $ 43,500 Purchases 270,000 Goods Available for Sale 313,500 Ending Inventory 56,160 Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Income Tax Expense Net Income