Question

Blue Corporation has the following four items in its ending inventory. Item Cost Net Realizable Value...

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

Homework Answers

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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