Question

he inventory of Metlock Company on December 31, 2017, consists of the following items.

Part			Quantity		Cost per Unit		Net Realizable Value
110			580		$111		$117
111			910		70		61
112			540		94		89
113			190		199		211
120			400		240		243
121	a		1,600		19		1
122			270		281		275

^a Part No. 121 is obsolete and has a realizable value of $1 each as scrap.

(a) Determine the inventory as of December 31, 2017, by the LCNRV method, applying this method to each item.

Inventory as of December 31, 2017

$

(b) Determine the inventory by the LCNRV method, applying the method to the total of the inventory.

Inventory as of December 31, 2017

$

Answer 1

Part	Quantity	Cost per unit	NRV	Total cost	Total NRV	LCNRV
110	580	$111.00	$117.00	$64,380	$67,860	$64,380
111	910	$70.00	$61.00	$63,700	$55,510	$55,510
112	540	$94.00	$89.00	$50,760	$48,060	$48,060
113	190	$199.00	$211.00	$37,810	$40,090	$37,810
120	400	$240.00	$243.00	$96,000	$97,200	$96,000
121	1,600	$19.00	$1.00	$30,400	$1,600	$1,600
122	270	$281.00	$275.00	$75,870	$74,250	$74,250
Total				$418,920	$384,570	$377,610

(a) $377,610

(b) $384,570