90.2K
Verified Solution
Link Copied!
The controller of Cox Company is applying the Lower of Cost and Net Realizable Value to its ending inventory. The following information is available:
Cost NRV
Lawnmowers:
Self-propelled $14,800 $17,000
Push type 19,000 18,000
Total 33,800 35,000
Snowblowers:
Manual 29,800 31,000
Self-start 19,000 21,000
Total 48,800 52,000
Total inventory $82,600 $87,000
A) Compute the value of the ending inventory by applying the Lower of Cost and Net Realizable Value.
| | | | | LCNRV Applies |
| Description | Category | Cost | NRV | Individual | Category | Total |
| Self-propelled | Lawnmowers | | | | | |
| Push type | Lawnmowers | | | | | |
| Total Lawnmowers | | | | | |
| Manual | Snowblower | | | | | |
| Self-start | Snowblower | | | | | |
| Total Snowblowers | | | | | |
| Total | | | | | |
B) Prepare the adjusting entry, if required, if LCNRV was applied using individual products
| General Journal G1 |
| Date | Account Title and Explanation | Ref. | Debit | Credit |
| | | | | |
| | | | | |
| | | | | |
Answer & Explanation
Solved by verified expert
