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H.T. Tan Company is preparing the annual financial statements dated December 31 of the current year. Ending inventory information about the five major items stocked for regular sale follows: ENDING INVENTORY, CURRENT YEAR Item ABCDE Quantity on Hand 68 98 28 88 368 Unit Cost When Acquired (FIFO) Net Realizable Value (Market) at Year-End $ 19 $ 22 47 37 59 55 37 32 12 17 Required: Compute the valuation that should be used for the current year ending inventory using lower of cost or net realizable value applied on an item-by-item basis. Total Net Value Lower of Cost or NRV Item Quantity Total Cost Realizable A 68 B 98 CDE 28 D 88 368 Total $ 0 $ $ 0

H.T. Tan Company is preparing the annual financial statements dated December 31 of the current year. Ending inventory information about the five major items stocked for regular sale follows: ENDING INVENTORY, CURRENT YEAR Item ABCDE Quantity on Hand 68 98 28 88 368 Unit Cost When Acquired (FIFO) Net Realizable Value (Market) at Year-End $ 19 $ 22 47 37 59 55 37 32 12 17 Required: Compute the valuation that should be used for the current year ending inventory using lower of cost or net realizable value applied on an item-by-item basis. Total Net Value Lower of Cost or NRV Item Quantity Total Cost Realizable A 68 B 98 CDE 28 D 88 368 Total $ 0 $ $ 0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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H.T. Tan Company is preparing the annual financial statements dated December 31 of the current year. Ending inventory information about the five major items stocked for regular sale follows: ENDING INVENTORY, CURRENT YEAR Item ABCDE Quantity on Hand 68 98 28 88 368 Unit Cost When Acquired (FIFO) Net Realizable Value (Market) at Year-End $ 19 $ 22 47 37 59 55 37 32 12 17 Required: Compute the valuation that should be used for the current year ending inventory using lower of cost or net realizable value applied on an item-by-item basis. Total Net Value Lower of Cost or NRV Item Quantity Total Cost Realizable A 68 B 98 CDE 28 D 88 368 Total $ 0 $ $ 0
Transcribed Image Text:H.T. Tan Company is preparing the annual financial statements dated December 31 of the current year. Ending inventory information about the five major items stocked for regular sale follows: ENDING INVENTORY, CURRENT YEAR Item ABCDE Quantity on Hand 68 98 28 88 368 Unit Cost When Acquired (FIFO) Net Realizable Value (Market) at Year-End $ 19 $ 22 47 37 59 55 37 32 12 17 Required: Compute the valuation that should be used for the current year ending inventory using lower of cost or net realizable value applied on an item-by-item basis. Total Net Value Lower of Cost or NRV Item Quantity Total Cost Realizable A 68 B 98 CDE 28 D 88 368 Total $ 0 $ $ 0
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