Question

The inventory of Splish Company on December 31, 2020, consists of the following items.

Part			Quantity		Cost per Unit		Net Realizable Value
110			650		$140.00		$147.00
111			990		88.20		76.00
112			530		117.60		112.00
113			180		249.90		264.60
120			390		301.00		306.00
121	a		1,500		24.00		1.00
122			270		352.80		345.00

^a Part No. 121 is obsolete and has a realizable value of $1.00 each as scrap.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

Answer 1

a.

Part	Quantity	Cost per Unit	Net Realizable Value	Amount
110	650	$ 140	$ 147	$ 91,000
111	990	88.20	76	75,240
112	530	117.60	112	59,360
113	180	249.90	264.60	44,982
120	390	301.00	306	117,390
121. a.	1,500	24.00	1.00	1,500
122	270	352.80	345.00	93,150
Inventory as on December 31, 2020	$ 482,622

b.

Part	Quantity	Cost per Unit	Amount	Quantity	NRV per Unit	Amount
110	650	$ 140	$ 91,000	650	$ 147	$ 95,550
111	990	88.20	87,318	990	76	75,240
112	530	117.60	62,328	530	112	59,360
113	180	249.90	44,982	180	264.60	47,628
120	390	301	117,390	390	306	119,340
121.a.	1,500	24	36,000	1,500	1.00	1,500
122	270	352.80	95,256	270	345	93,150
Totals			$ 534,274			$ 491,768
Inventory as on December 31, 2020	$ 491,768