Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The inventory of Vaughn Company on December 31, 2020, consists of the following items. Part Quantity Cost per Unit Net Realizable Value 110 650 $123.00
The inventory of Vaughn Company on December 31, 2020, consists of the following items.
Part | Quantity | Cost per Unit | Net Realizable Value | ||||
---|---|---|---|---|---|---|---|
110 | 650 | $123.00 | $129.00 | ||||
111 | 1,010 | 77.40 | 67.00 | ||||
112 | 470 | 103.20 | 98.00 | ||||
113 | 190 | 219.30 | 232.20 | ||||
120 | 390 | 264.00 | 268.00 | ||||
121 | a | 1,700 | 21.00 | 1.00 | |||
122 | 270 | 309.60 | 303.00 |
a Part No. 121 is obsolete and has a realizable value of $1.00 each as scrap.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 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started