Problem 9-2 Lower of cost or net realizable value (L09-1] Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2018 year-end inventory is as follows: Net Realizable Value Per Unit Cost Quantity 100 Inventory. by Product Category Tools: Hammers Saws Screwdrivers Paint products: 1-gallon cans Paint brushes 120 $4.20 9.20 1.20 $4.70 8.20 1.80 220 420 100 5.20 4.20 3.70 3.20 Required: 1. Determine the carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule is applied to (a) individual products, (b) product categories, and (c) total inventory 2. Assuming that the company reports an inventory write down as a line item in the income statement, for each of the LCNRV applications determine the amount of the loss. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule is applied to (a) individual products, (b) product categories, and (c) total inventory. Lower of cost and NRV By By Individual Product By Total Realizable 2. Assuming that the company reports an inventory write-down as a line item in the income statement, for each of the LCNRV applications determine the amount of the loss. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule is applied to (a) individual products, (b) product categories, and (c) total inventory. Lower of cost and NRV Net By By Realizable Value Individual Products Product Type By Total Inventory Cost Product Tools Hammers Sows Screwdrivers Total tools Paint products 1-gallon cans Paint brushes Total paint Total Required 2 > Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2018 year-end Inventory is as follows: Net Realizable Value Per Unit Cost Quantity 100 Inventory. by Product Category Tools: Hammers Saws Screwdrivers Paint products: 1-gallon cans Paint brushes 120 220 $4.20 9.20 1.20 $4.70 8.20 1.80 420 100 5.20 3.20 4.20 3.70 Required: 1. Determine the carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule is applied to (a) individual products, (b) product categories, and (c) total inventory. 2. Assuming that the company reports an inventory write-down as a line item in the income statement, for each of the LCNRV applications determine the amount of the loss. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assuming that the company reports an inventory write-down as a line item in the income statement, for each of the LCNRV applications determine the amount of the loss. (a) Individual products (b) Product categories (c) Total inventory
