Question

Blue Corporation has the following four items in its ending inventory.

Item		Cost		Net Realizable Value (NRV)
Jokers		$2,880		$3,024
Penguins		7,200		7,128
Riddlers		6,336		6,660
Scarecrows		4,608		5,515

Determine the following the LCNRV for each item.

Item		LCNRV
Jokers		$enter a dollar amount
Penguins		enter a dollar amount
Riddlers		enter a dollar amount
Scarecrows		enter a dollar amount

Answer 1

Answer-:

LCNRV stands for Lower Of Cost or Net Realisable Value.

As per GAAP, inventory should be valued at lower of cost or net Realisable Value.

Net Realisable Value or NRV is the market value of the inventory.

For each item, LCNRV are as follows-:

Item	Cost	NRV	LCNRV
Jokers	$2,880	$3,024	$2,880
Penguins	$7,200	$7,128	$7,128
Riddlers	$6,336	$6,660	$6,336
Scarecrows	$4,608	$5,515	$4,608

Total.

$21,024

$22,327

$20,952

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