Question
The inventory of Sunland Company on December 31, 2020, consists of the following items. Part Quantity Cost per Unit Net Realizable Value 110 560 $119.00
The inventory of Sunland Company on December 31, 2020, consists of the following items.
| Part | Quantity | Cost per Unit | Net Realizable Value | ||||
|---|---|---|---|---|---|---|---|
| 110 | 560 | $119.00 | $125.00 | ||||
| 111 | 1,060 | 75.00 | 65.00 | ||||
| 112 | 550 | 100.00 | 95.00 | ||||
| 113 | 220 | 212.50 | 225.00 | ||||
| 120 | 440 | 256.00 | 260.00 | ||||
| 121 | a | 1,700 | 20.00 | 1.00 | |||
| 122 | 290 | 300.00 | 294.00 | ||||
a Part No. 121 is obsolete and has a realizable value of $1.00 each as scrap. (a) Determine the inventory as of December 31, 2020, by the LCNRV method, applying this method to each item.
| Inventory as of December 31, 2020 | $enter the Inventory as of December 31 in dollars |
(b) Determine the inventory by the LCNRV method, applying the method to the total of the inventory.
| Inventory as of December 31, 2020 | $enter the Inventory as of December 31 in dollars |
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
