Question

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^a Part No. 121 is obsolete and has a realizable value of $1.00 each as scrap.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

Answer 1