P9.11 (LO 1, 3, 6) (Statement and Note Disclosure, LCNRV, and Purchase Committment) Maddox specialty

can you please show calculations

the past MU PO 2, 3, (Suatement of Norte ia locure LCINHV, and Purchase Commitment) de speciality Company, a division of Eat World Ind manufactures the models of gear shift compo Menu for Handles that are to helburpeine votre aides and catalog outlets since beginning op de les perpetual inventoryentem. The balance of the inventory accounts at the end of Madden's fiscal year, er 30, 200, are shown below. The inventories are stated at cont before any year end adjustments. $647.000 Work in process 112.500 Raw materials 264,000 Factory supplies 69,000 The following information relates to Maddox's inventory and operations 1. The finished goods inventory consists of the items analyzed below. Cost NRV Down tube shifter Standard model 567.500 5 67.000 Click adjustment model 94.500 89.000 Deluxe model 108.000 110.000 Total down tube shifters 270.000 266.000 Barend shifter Standard model $3.000 90.050 Click adjustment model 99,000 97.550 Total bar end shifters 182,000 187.500 Head tube shifter Standard model 78,000 77.650 Click adjustment model 117.000 119.300 Total head tube shifters 195.000 196.950 Total finished goods $647.000 S650.550 2. One-tualf of the head tube shifter finished goods inventory is held by catalog outlets on consignment. 3. Three quarters of the bar end shifter finished goods inventory has been pledged as collateral for a bank loan 4. One-half of the raw materiais balance represents derailleurs acquired at a contracted price 20% above the current market price. The NRV of the rest of the raw materials is $127.400 5. The total NRV of the work in process inventory is $108,700. 6. Included in the cost of factory supplies are obsolete items with an historical cost of $4.200. The market value of the remaining factory supplies is 565,900. 7. Maddox applies the LCNRV method to each of the three types of shifters in finished goods inventory For each of the other three inventory accounts, Maddox applies the LCNRV method to the total of each inventory account 8. Consider all amounts presented above to be material in relation to Maddox's financial statements taken as a whole. Instructions 2. Prepare the inventory section of Maddox's balance sheet as of November 30, 2020, including any required note(s) b. Without prejudice to your answer to (a), assume that the NRV of Maddox's inventories is less than cost. Explain how this decline would be presented in Maddox's income statement for the fiscal year ended November 30, 2020 - Assume that Maddox has a firm purchase commitment for the same type of derailleur included in the raw materials inventory as of November 30, 2020, and that the purchase commitment is at a contracted price 15% greater than the current market price. These derailleurs are to be delivered to Maddox after November 30, 2020. Discuss the impact, if any, that this purchase commitment would have on Maddor's financial statements prepared for the fiscal year ended November 30, 2020 (LO 7) (Content the past MU PO 2, 3, (Suatement of Norte ia locure LCINHV, and Purchase Commitment) de speciality Company, a division of Eat World Ind manufactures the models of gear shift compo Menu for Handles that are to helburpeine votre aides and catalog outlets since beginning op de les perpetual inventoryentem. The balance of the inventory accounts at the end of Madden's fiscal year, er 30, 200, are shown below. The inventories are stated at cont before any year end adjustments. $647.000 Work in process 112.500 Raw materials 264,000 Factory supplies 69,000 The following information relates to Maddox's inventory and operations 1. The finished goods inventory consists of the items analyzed below. Cost NRV Down tube shifter Standard model 567.500 5 67.000 Click adjustment model 94.500 89.000 Deluxe model 108.000 110.000 Total down tube shifters 270.000 266.000 Barend shifter Standard model $3.000 90.050 Click adjustment model 99,000 97.550 Total bar end shifters 182,000 187.500 Head tube shifter Standard model 78,000 77.650 Click adjustment model 117.000 119.300 Total head tube shifters 195.000 196.950 Total finished goods $647.000 S650.550 2. One-tualf of the head tube shifter finished goods inventory is held by catalog outlets on consignment. 3. Three quarters of the bar end shifter finished goods inventory has been pledged as collateral for a bank loan 4. One-half of the raw materiais balance represents derailleurs acquired at a contracted price 20% above the current market price. The NRV of the rest of the raw materials is $127.400 5. The total NRV of the work in process inventory is $108,700. 6. Included in the cost of factory supplies are obsolete items with an historical cost of $4.200. The market value of the remaining factory supplies is 565,900. 7. Maddox applies the LCNRV method to each of the three types of shifters in finished goods inventory For each of the other three inventory accounts, Maddox applies the LCNRV method to the total of each inventory account 8. Consider all amounts presented above to be material in relation to Maddox's financial statements taken as a whole. Instructions 2. Prepare the inventory section of Maddox's balance sheet as of November 30, 2020, including any required note(s) b. Without prejudice to your answer to (a), assume that the NRV of Maddox's inventories is less than cost. Explain how this decline would be presented in Maddox's income statement for the fiscal year ended November 30, 2020 - Assume that Maddox has a firm purchase commitment for the same type of derailleur included in the raw materials inventory as of November 30, 2020, and that the purchase commitment is at a contracted price 15% greater than the current market price. These derailleurs are to be delivered to Maddox after November 30, 2020. Discuss the impact, if any, that this purchase commitment would have on Maddor's financial statements prepared for the fiscal year ended November 30, 2020 (LO 7) (Content