Question

Metlock Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2017, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Item D Item E Item F Item G Item H Item I Estimated selling price $124 $113 $98 $93 $113 $93 Cost 77 82 82 82 52 37 Cost to complete 31 31 26 36 31 31 Selling costs 10 19 10 21 10 21 Using the LCNRV rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2017, for each of the inventory items above. Item D $ Item E $ Item F $ Item G $ Item H $ Item I $ Click if you would like to Show Work for this question

Answer 1

	LCNRV
Item D	77
Item E	63
Item F	62
Item G	36
Item H	52
Item I	37
Workings:
	Estimated selling price	Cost to complete	Selling costs	NRV	Cost	LCNRV
Item D	124	31	10	83	77	77
Item E	113	31	19	63	82	63
Item F	98	26	10	62	82	62
Item G	93	36	21	36	82	36
Item H	113	31	10	72	52	52
Item I	93	31	21	41	37	37
Note: NRV = Estimated selling price-Cost to complete-Selling costs