Part NO

110
111
112
113
120
121
122

a.

b.
 Per Unit Lower -of-cost-of-
Quantity Cost market Total Cost Total Market market
600 $ 95.00 $ 100.00 $ 57,000 $ 60,000 $ 57,000
1000 $ 60.00 $ 52.00 $ 60,000 $ 52,000 $ 52,000
500 $ 80.00 $ 76.00 $ 40,000 $ 38,000 $ 38,000
200 $ 170.00 $ 180.00 $ 34,000 $ 36,000 $ 34,000
400 $ 205.00 $ 208.00 $ 82,000 $ 83,200 $ 82,000
1600 $ 16.00 $ 1.00 $ 25,600 $ 1,600 $ 1,600
300 $ 240.00 $ 235.00 $ 72,000 $ 70,500 $ 70,500
$ 370,600 $ 341,300 $ 335,100

Determine the inventory as of december 31,2019. by the LCNRV this

method, to each item
= $ 335,100

determine the inventory by the LCNRV method, aplying the method to

the total of the inventory
= $ 341,300
 Item
D
E
F
G
H
I

*Estimated selling Pice - Est

=
 Net Realizable Value Cost LCRNV
€ 80 € 75 € 75
€ 62 € 80 € 62
€ 60 € 80 € 60
€ 35 € 80 € 35
€ 70 € 50 € 50
€ 40 € 36 € 36

*Estimated selling Pice - Estimated selling cost and cost to complete

€ 80.00
Item No
1320
1333
1426
1437
1510
1522
1573
1626
 Cost Per unit Net Realizable Value LCRNV Quantity Final Inventory Value
$ 3.20 $ 2.90 $ 2.90 1200 $ 3,480.00
$ 2.70 $ 2.40 $ 2.40 900 $ 2,160.00
$ 4.50 $ 3.60 $ 3.60 800 $ 2,880.00
$ 3.60 $ 1.85 $ 1.85 1000 $ 1,850.00
$ 2.25 $ 1.85 $ 1.85 700 $ 1,295.00
$ 3.00 $ 3.10 $ 3.00 500 $ 1,500.00
$ 1.80 $ 1.30 $ 1.30 3000 $ 3,900.00
$ 4.70 $ 4.50 $ 4.50 1000 $ 4,500.00
$ 21,565.00
NRV = Estimated selling Prize - Cost Complete and Sell
Example $ 4,50 - $ 1,60 = $ 2,90