Question

The inventory of Bramble Company on December 31, 2020, consists of the following items. Part Quantity Cost per Unit Net Realizable Value 110 620 $121.00 $127.00 111 1,080 76.20 66.00 112 540 101.60 97.00 113 220 215.90 228.60 120 440 260.00 264.00 121 a 1,400 20.00 1.00 122 330 304.80 298.00 a Part No. 121 is obsolete and has a realizable value of $1.00 each as scrap.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.

Answer 1

$462,562

Step-by-step explanation:

Lower of Cost and Net Realizable Value (LCNRV) records ending inventory at the lowest between purchase costs or net realizable value.

Part Q Cost per Unit Net RV Total

110 620 $121.00 $127.00 $75,020

111 1,080 $76.20 $66.00 $71,280

112 540 $101.60 $97.00 $52,380

113 220 $215.90 $228.60 $47,498

120 440 $260.00 $264.00 $114,400

121 1,400 $20.00 $1.00 $1,400

122 330 $304.80 $298.00 $100,584

Total $462,562