Question
Kumasi Co. sells two types of roofing tiles. One type of tile is made from natural quarried slate and the other from cement. The natural
Kumasi Co. sells two types of roofing tiles. One type of tile is made from natural quarried slate and the other from cement. The natural slate is offered in two colors, and the cement tiles in three colors. The companys Inventory at Cost [FIFO] and NRV are given in the table below.
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Group | Item | Cost $ | NRV $ | Individual Item | Group | Total |
Slate | Black | 90,000 | 70,000 |
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Blue | 95,000 | 90,000 |
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Cement | Red | 100,000 | 120,000 |
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Yellow | 95,000 | 110,000 |
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Green | 50,000 | 40,000 |
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Q6a. Determine LCNVR by applying the LCNVR rule to each of the 5-individual tiles.
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Answer: LCNRV by individual item is $ |
Q6b. Determine LCNVR by applying the LCNVR rule to the each of the 2 groups, slate, and cement.
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Answer: LCNRV by group is $ |
Q6c. Determine LCNVR by applying the LCNVR rule to the total inventory.
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Answer: LCNRV by total inventory is $ |
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