Exercise 9-1

The inventory of Tamarisk Company on December 31, 2017, consists of the following items.

Part

Quantity

Cost per Unit

Net Realizable Value

110 580 $111 $117

111 910 70 61

112 540 94 89

113 190 199 211

120 400 240 243

121 a 1,600 19 1

122 270 281 275

a Part No. 121 is obsolete and has a realizable value of $1 each as srap.

(a) Determine the inventory as of December 31, 2017, by the LCNRV method, applying this method to each item.

Inventory as of December 31, 2017

$

(b) Determine the inventory by the LCNRV method, applying the method to the total of the inventory.

Inventory as of December 31, 2017

$