Al Ghanem company uses the LCNRV method to evaluate inventory for financial reporting purposes. Information related to inventory at September 30, 2020 appears below.

Item X Item Y Item Z

Quantity 4,000 units 2,000 units 3,000 units

Estimated Selling Price per unit $600 $450 $520

Cost per unit 550 385 310

Cost to complete per unit 120 50 20

Cost to sell per unit 20 17 19

Required

1) Compute the net realizable value for the items X, Y and Z individually. Show calculations (9 points)

Item A Item B Item C

NRV

2) Determine the correct value to be reported for inventory on the Financial Position Statement applying LCNRV for each item individually. (9 points)

Item A Item B Item C

LCNRV

3) Determine the correct value to be reported for inventory on the Financial Position Statement applying LCNRV for inventory in total. (12 points)

Total inventory

LCNRV