Novak Company uses the LCNRV method, on an individual-itèm basis, in pricing its inventory items. The inventory at December 31,2025, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below.ItemDEFGHIEstimated selling price$151$139$120$113$139$113Cost951011011016345Cost to complete383832443838Selling costs132313251325Using the LCNRV rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2025, for each of theinventory items above.Item D$100Item E$88Item F$75Item G$44

LCNRV - "Lower of Cost or Net Realisable Value" is a method used in inventory valuation..The…

Answered: Using the LCNRV rule, determine the…

Using the LCNRV rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2025, for each of the inventory items above.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 4PEB: Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory...

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Question

Novak Company uses the LCNRV method, on an individual-itèm basis, in pricing its inventory items. The inventory at December 31,
2025, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below.
Item
D
E
F
G
H
I
Estimated selling price
$151
$139
$120
$113
$139
$113
Cost
95
101
101
101
63
45
Cost to complete
38
38
32
44
38
38
Selling costs
13
23
13
25
13
25
Using the LCNRV rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2025, for each of the
inventory items above.
Item D
$
100
Item E
$
88
Item F
$
75
Item G
$
44

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