Byron Company has five products in its inventory and uses the FIFO cost flow assumption. Specific data for each product are as follows: Product A B C D E B Cost $90,000 110,000 60,000 100,000 105,000 C D Selling Price $150,000 120,000 70,000 115,000 110,000 Required: 1. What is the correct inventory value, assuming the LCNRV rule is applied to each item of inventory? Product Inventory Value A Estimated Cost of Disposal $20,000 15,000 5,000 5,000 8,000 E Total 2. What is the correct inventory value, assuming the LCNRV rule is applied to the total of inventory? tems compared to the total of inventory.

Byron Company has five products in its inventory and uses the FIFO cost flow assumption. Specific data for each product are as follows: Product A B C D E B Cost $90,000 110,000 60,000 100,000 105,000 C D Selling Price $150,000 120,000 70,000 115,000 110,000 Required: 1. What is the correct inventory value, assuming the LCNRV rule is applied to each item of inventory? Product Inventory Value A Estimated Cost of Disposal $20,000 15,000 5,000 5,000 8,000 E Total 2. What is the correct inventory value, assuming the LCNRV rule is applied to the total of inventory? tems compared to the total of inventory.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 2RE: Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net...

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Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for last-in, first-out (LIFO).
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Byron Company has five products in its inventory and uses the FIFO cost flow assumption. Specific data for each product are as follows: 1. what is the correct inventory value assuming the LCNRV rule is applied to each item of inventory? 2. What is the correct inventory value assuming the LCNRV rule is applied to the total of inventory? 3. Next Level Comment on any differences that result from applying the LCNRV rule to individual items coinpared to the total of inventory.
Jenks Company developed the following information about its inventories in applying the lower-of-cost-or-net-realizabl e-value(LCNRV) basis in valuing inventories: Product Cost NRV A $114,000 $120,000 B 80,000 76,000 C 160,000 162,000 After Jenks applies the LCNRV rule, the value of the inventory reported on the balance sheet would be
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