Novelli's Nursery has developed the following data in order to calculate the lower of cost or net realizable value for its products. The individual products are listed within the categories of trees. Selling Price Cost Broad leaf trees: Ash Beech $ 1,860 2,290 $1,760 1,660 Needle leaf trees: Cedar Fir $ 2,620 3,750 $ 1,810 3,410 Fruit trees: Apple Cherry $ 1,860 2,390 $ 1,460 1,860 The costs to sell are 10% of selling price. Required: Determine the reported inventory value assuming the lower of cost or net realizable value rule is applied to categories of trees. Lower of Product Cost NRV Cost or NRV Ash Beech $ 1,760 Broad leaf trees $ 1,760 Cedar Fir Needle leaf trees Apple Cherry Fruit trees Inventory value
Novelli's Nursery has developed the following data in order to calculate the lower of cost or net realizable value for its products. The individual products are listed within the categories of trees. Selling Price Cost Broad leaf trees: Ash Beech $ 1,860 2,290 $1,760 1,660 Needle leaf trees: Cedar Fir $ 2,620 3,750 $ 1,810 3,410 Fruit trees: Apple Cherry $ 1,860 2,390 $ 1,460 1,860 The costs to sell are 10% of selling price. Required: Determine the reported inventory value assuming the lower of cost or net realizable value rule is applied to categories of trees. Lower of Product Cost NRV Cost or NRV Ash Beech $ 1,760 Broad leaf trees $ 1,760 Cedar Fir Needle leaf trees Apple Cherry Fruit trees Inventory value
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Novelli's Nursery has developed the following data in order to calculate the lower of cost or net realizable value for its products.
The individual products are listed within the categories of trees.
Selling
Price
Cost
Broad leaf trees:
Ash
Beech
$ 1,860
2,290
$1,760
1,660
Needle leaf trees:
Cedar
Fir
$ 2,620
3,750
$ 1,810
3,410
Fruit trees:
Apple
Cherry
$ 1,860
2,390
$ 1,460
1,860
The costs to sell are 10% of selling price.
Required:
Determine the reported inventory value assuming the lower of cost or net realizable value rule is applied to categories of trees.
Lower of
Product
Cost
NRV
Cost or NRV
Ash
Beech
$
1,760
Broad leaf trees
$
1,760
Cedar
Fir
Needle leaf trees
Apple
Cherry
Fruit trees
Inventory value
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