Question

Presented below is selected information related to Garcia Electronics’ inventory.

(per unit)		HDTV-50"			HDTV-42"			TV Stand
Historical cost		$420			$300			$60
Selling price		539			329			79
Cost to sell		31			15			2.25
Cost to complete		52			24			6.5

Determine the following: (a) the net realizable value for each item, and (b) the carrying value of each item under LCNRV.

		(a) NRV		(b) LCNRV
HDTV-50"		$enter a dollar amount		$enter a dollar amount
HDTV-42"		enter a dollar amount		enter a dollar amount
TV Stand		enter a dollar amount		enter a dollar amount

Answer 1

The answer has been properly described in the attached image.

The initial part explains the calculations to find NRV and LCNRV

Following which towards the end there is a table summarising the answers in the format given in the question.