Question

# 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 600 \$95.00 \$100.00 1,000 60.00 52.00 500 80 76.00 200 170 180.00 400 205.00 208.00 a 1,600 16.00 1.00 300 240 235.00

a Part No. 121 is obsolete and has a realizable value of \$1.00 each as scrap.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, applying this method to each item.

 Inventory as of December 31, 2020 \$enter the Inventory as of December 31 in dollars

(b) Determine the inventory by the LCNRV method, applying the method to the total of the inventory.

 Inventory as of December 31, 2020 \$enter the Inventory as of December 31 in dollars

 Part No. Quantity Per Unit Cost Market Total Cost Total Market Lower of Cost or Market 110 600 \$95 \$100 \$57,000 \$60,000 \$57,000 111 1,000 \$60 \$52 \$60,000 \$52,000 \$52,000 112 500 \$80 \$76 \$40,000 \$38,000 \$38,000 113 200 \$170 \$180 \$34,000 \$36,000 \$34,000 120 400 \$205 \$208 \$82,000 \$83,200 \$82,000 121a 1,600 \$16 \$1 \$25,600 \$1,600 \$1,600 122 300 \$240 \$235 \$72,000 \$70,500 \$70,500 \$370,600 \$341,300 \$335,100

a) The valuation of inventory as of December 31, 2020, by the lower of cost or market method, as applied directly to each item is \$335,100

b) The valuation of inventory as of December 31, 2020, by the lower of cost or market method, as applied to total inventory is \$341,300

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