Question

Showtime Company’s ending inventory at December 31, 2020, includes the following items: Product Units on Hand...

Showtime Company’s ending inventory at December 31, 2020, includes the following items:

Product Units on Hand Unit Cost Net Realizable Value Per Unit
BB 30 $ 118 $ 123
FM 15 153 146
MB 44 194 180
SL 48 86 100


Required:
Calculate LCNRV for the inventory:

a. As a whole (assuming the items are similar).


Homework Answers

Answer #1

Answer (a) : Calculation of Total Cost and Total Net Realizable Value

No of Units Unit cost Total Cost NRV per unit Total NRV
(A) (B) (C) = (A)*(B) (D) (E) = (A)*(D)
BB 30 118 3,540 123 3,690
FM 15 153 2,295 146 2,190
MB 44 194 8,536 180 7,920
SL 48 86 4,128 100 4,800
Total 18,499 18,600

Value of Inventory = Lower of NRV ($18,600) and Cost($18,499) = $18,499

All the best

Note : If you have any queries relating to this answer or need any clarification, feel free to reach us in comments. Kindly provide your valuable feedback, if you're satisfied with the solutions

Best efforts are made to provide best answer. However, if still any error creeped in, kindly let me know I'll correct the error.

THANK YOU

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The inventory of Splish Company on December 31, 2020, consists of the following items. Part Quantity...
The inventory of Splish Company on December 31, 2020, consists of the following items. Part Quantity Cost per Unit Net Realizable Value 110 650 $140.00 $147.00 111 990 88.20 76.00 112 530 117.60 112.00 113 180 249.90 264.60 120 390 301.00 306.00 121 a 1,500 24.00 1.00 122 270 352.80 345.00 a Part No. 121 is obsolete and has a realizable value of $1.00 each as scrap.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,...
Question 6 The inventory of Bonita Company on December 31, 2020, consists of the following items....
Question 6 The inventory of Bonita Company on December 31, 2020, consists of the following items. Part Quantity Cost per Unit Net Realizable Value 110 580 $111.00 $117.00 111 910 70.20 61.00 112 540 93.60 89.00 113 190 198.90 210.60 120 400 240.00 243.00 121 a 1,600 19.00 1.00 122 270 280.80 275.00 a Part No. 121 is obsolete and has a realizable value of $1.00 each as scrap.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...
The inventory of Vaughn Company on December 31, 2020, consists of the following items. Part Quantity...
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,...
The inventory of Kingbird Company on December 31, 2020, consists of the following items. Part Quantity...
The inventory of Kingbird Company on December 31, 2020, consists of the following items. Part Quantity Cost per Unit Net Realizable Value 110 540 $134.00 $141.00 111 970 84.60 73.00 112 510 112.80 107.00 113 200 239.70 253.80 120 440 289.00 293.00 121 a 1,700 23.00 1.00 122 320 338.40 331.00 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,...
The inventory of Windsor Company on December 31, 2020, consists of the following items. Part Quantity...
The inventory of Windsor Company on December 31, 2020, consists of the following items. Part Quantity Cost per Unit Net Realizable Value 110 650 $109.00 $115.00 111 1,000 69.00 60.00 112 510 92.00 87.00 113 220 195.50 207.00 120 380 236.00 239.00 121 a 1,500 18.00 1.00 122 310 276.00 270.00 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,...
The inventory of Oheto Company on December 31, 2020, consists of the following items. Part Quantity...
The inventory of Oheto Company on December 31, 2020, consists of the following items. Part Quantity Cost per Unit Net Realizable Value 110 600 $95.00 $100.00 111 1,000 60.00 52.00 112 500 80 76.00 113 200 170 180.00 120 400 205.00 208.00 121 a 1,600 16.00 1.00 122 300 240 235.00 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,...
Martinez Company's ending inventory includes the following items.    Per Unit   Product Units Cost Market   Helmets...
Martinez Company's ending inventory includes the following items.    Per Unit   Product Units Cost Market   Helmets 42      $ 64    $ 60       Bats 35      82    114       Shoes 56      101    105       Uniforms 60      46    46        Compute the lower of cost or market for ending inventory applied separately to each product.
Wildhorse Corporation had the following items in inventory as at December 31, 2020: Item No. Quantity...
Wildhorse Corporation had the following items in inventory as at December 31, 2020: Item No. Quantity Unit Cost NRV A1 135 $2.70 $5.70 B4 190 2.50 2.45 C2 110 7.65 8.80 D3 130 7.90 7.45 Assume that Wildhorse uses a perpetual inventory system, and that none of the inventory items can be grouped together for accounting purposes. Prepare the year-end adjusting entry required to adjust to the lower of cost or net realizable value on an item-by-item basis using the...
Sandals Company is preparing the annual financial statements dated December 31. Ending inventory is presently recorded...
Sandals Company is preparing the annual financial statements dated December 31. Ending inventory is presently recorded at its total cost of $7,500. Information about its inventory items follows: Product Line Quantity on Hand Unit Cost When Acquired (FIFO) Value at Year-End Air Flow 95 $ 25 $ 31 Blister Buster 15 70 65 Coolonite 15 45 43 Dudesly 85 40 48 1) . Compute the LCM/NRV write-down per unit and in total for each item in the table. Also compute...
Bivariate Data & Probability After completing the calculation by hand in Q1 you can use Excel...
Bivariate Data & Probability After completing the calculation by hand in Q1 you can use Excel to check your answers before submitting. Q2 assesses your general understanding of probability and linear associations using Excel to analyse a large dataset. Question 1       Covariance and Correlation The table below shows a set of sample bivariate data. Calculate the covariance and correlation coefficient by completing the below table. Show all working. X Y (X - ) (Y - ) (X - )(Y -...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT