The records of Loren Movers Ltd. contained the following inventory data:

		20X1								20X2
		Cost			NRV				Cost			NRV
Category 1
	Item A		$	14,600		$	12,700			$	12,900		$	9,780
	Item B			41,000			35,900				13,800			11,920
	Item C			43,400			52,700				51,000			61,150
			$	99,000		$	101,300				77,700		$	82,850
Category 2
	Item D		$	21,500		$	19,480			$	19,300		$	17,740
	Item E			20,600			-1,100				5,600			1,100
	Item F			43,000			43,000				68,600			65,500
			$	85,100		$	61,380			$	93,500		$	84,340

Required: 1. Calculate two different amounts that could justifiably be recorded as the allowance to reduce inventory to lower-of-cost-or-NRV at the end of 20X1.

The records of Loren Movers Ltd. contained the following inventory data:

		20X1								20X2
		Cost			NRV				Cost			NRV
Category 1
	Item A		$	14,600		$	12,700			$	12,900		$	9,780
	Item B			41,000			35,900				13,800			11,920
	Item C			43,400			52,700				51,000			61,150
			$	99,000		$	101,300				77,700		$	82,850
Category 2
	Item D		$	21,500		$	19,480			$	19,300		$	17,740
	Item E			20,600			-1,100				5,600			1,100
	Item F			43,000			43,000				68,600			65,500
			$	85,100		$	61,380			$	93,500		$	84,340

Required: 1. Calculate two different amounts that could justifiably be recorded as the allowance to reduce inventory to lower-of-cost-or-NRV at the end of 20X1.

The records of Loren Movers Ltd. contained the following inventory data:

		20X1								20X2
		Cost			NRV				Cost			NRV
Category 1
	Item A		$	14,600		$	12,700			$	12,900		$	9,780
	Item B			41,000			35,900				13,800			11,920
	Item C			43,400			52,700				51,000			61,150
			$	99,000		$	101,300				77,700		$	82,850
Category 2
	Item D		$	21,500		$	19,480			$	19,300		$	17,740
	Item E			20,600			-1,100				5,600			1,100
	Item F			43,000			43,000				68,600			65,500
			$	85,100		$	61,380			$	93,500		$	84,340

Required: 1. Calculate two different amounts that could justifiably be recorded as the allowance to reduce inventory to lower-of-cost-or-NRV at the end of 20X1.

v

The records of Loren Movers Ltd. contained the following inventory data:

		20X1								20X2
		Cost			NRV				Cost			NRV
Category 1
	Item A		$	14,600		$	12,700			$	12,900		$	9,780
	Item B			41,000			35,900				13,800			11,920
	Item C			43,400			52,700				51,000			61,150
			$	99,000		$	101,300				77,700		$	82,850
Category 2
	Item D		$	21,500		$	19,480			$	19,300		$	17,740
	Item E			20,600			-1,100				5,600			1,100
	Item F			43,000			43,000				68,600			65,500
			$	85,100		$	61,380			$	93,500		$	84,340

Required: 1. Calculate two different amounts that could justifiably be recorded as the allowance to reduce inventory to lower-of-cost-or-NRV at the end of 20X1.

A. Individual items

B. Category

2. Record the 20X1 lower-of-cost-or-NRV adjustments (if any) for each of the two amounts from requirement 1, using the valuation allowance method.