Question 9: Inventory Nick has provided you the inventory listing in excel. Column C shows the historical cost, and column is the last selling price of the product which Nick asserts is the net realizable value of the product. Compare column C and column to determine which products that have a lower NRV then cost. This can casily be accomplished by using the min function in excel. Required: 1. Perform a lower of cost or net realizable value analysis on a product by product basis (blue cells to the right of inventory listing in columns Gand II). Please see additional requirements below the inventory listing. LCNRV Total Inventory Cost LCNRV 20 226 497 103 380 285 PRODUCTS QTY ON HAND 85276 92162 91050 21042 25591 85684 37229 75624 57765 60807 90163 97318 65838 48290 139 490 366 138 13 22 352 400 293 297 UNIT COST 25.31 151.19 105.86 9025 94.13 11.68 56.80 40.60 62.77 90.44 12.68 90.97 5703 73.97 84 25 8455 59.10 55.93 47.61 75.90 101.62 151.28 31.71 20.08 84.57 98.83 90.99 46.98 Net Realizable value UNIT SELLING PRICE DATE LAST SALE LAST SALE 2020-09-14 79.26 2020-12-15 472 84 2020-08-31 250 42 2020-09-10 194.38 2020-10-16 314 51 2020-07-14 23.55 2020-12-03 120.95 2020-08-20 33.39 2020-08-23 168.36 2020-09-08 188.43 2020-08-04 8.37 2020-08-02 239.61 2020-10-27 63.90 2020-08-26 39.90 2020-12-08 224 52 2020-07-24 281.90 2020.09.15 121.43 2020-09-27 174.17 2020-09-27 72.93 2020-11-09 213.07 2020-11-15 182.25 2020-07-24 499.83 2020-10-28 31.23 2020-12-05 19.67 2020.11-24 62.76 2020-08-07 243.25 2020-11-23 62.03 2020-11-27 152.71 Historical Cost 506.19 34.168.89 52,613.45 9.295.89 35,767.80 3.329 56 7,895.74 19.892.72 22,97561 12,481.12 164.90 4.366.42 1.254.70 26.037.13 33,70106 24,772.10 17,554.18 21,364.66 6.997.98 24.060.80 26,319 33 68,6R2 53 491557 8,554.29 21,987.09 3.36030 23,65669 4,885.44 382 47505 63731 86183 38822 96565 38998 67607 10217 17636 52432 67287 59842 96543 147 317 259 454 155 426 260 34 104 26536 60530 351446 56896 57604 42208 21861 88917 93355 71377 95753 47995 62968 30474 57474 14888 61893 12199 75890 189 71 138 368 71 159 391 218 496 40 369 456 179 369 359 322 399 126 386 370 477 189 438 46 35.72 80.15 101.28 139.07 77.21 95.17 7.73 22.56 75.12 47.57 71.31 34.52 40.67 161.38 28.36 94.49 104.20 92.35 100.14 34.60 28.00 53.97 49.27 190.00 2020-09-15 75.70 2020-11-15 43.78 2020-12-02 154.60 2020-10-10 287.96 2020-09-01 197.33 2020-10-15 33113 2020-09-15 22 23 2020-11-25 24 20 2020-11-23 86.81 2020-09-19 104.20 2020-12-11 164.85 2020-11-07 2183 2020-10-21 75.81 2020-10-28 528 49 2020-11-11 54.89 2020-10-03 80.35 2020-07-02 32144 2020-08-20 94 38 2020-07-OR 230.29 2020.09.06 73.95 2020-12-24 95.28 2020-12-14 126.72 2020-11-12 118.17 2020.08.03 416.68 Statement of financial position 10,531.24 5,690.74 13,977.19 51, 176,89 5.482.06 15,132.62 3,021.58 4,91758 37,259.19 1.902.84 26,313.05 15,739.79 7,280.39 59,548.21 10,179.85 30,426,63 41,575.78 11,635,47 38,654.25 12.00.60 13,357.57 10,201.22 21.582.19 8.740.08 978,689.15 82084 34853 92375 14411 74201 2. Prepare one adjusting journal entry on December 31 to adjust inventory to the lower of cost or net realizable value. Date Account Titles Debit Credit 3. What impact does the adjusting journal entry prepared in #2 have on the gross margin and inventory turnover (increase, decrease, or no effect)? Impact on gross margin Impact on inventory turnover
