Determine lcnrv approach for valuation of inventories

Assignment Help Accounting Basics

Reference no: EM131761209

Question: Waterway Company manufactures desks. Most of the company's desks are standard models and are sold on the basis of catalog prices. At December 31, 2017, the following finished desks (10 desks in each category) appear in the company's inventory.

Finished Desks	A	B	C	D
2017 catalog selling price	$55	$59	$111	$129
FIFO cost per inventory list 12/31/17	58	55	102	118
Estimated cost to complete and sell	6	14	32	25
2018 catalog selling price	62	66	111	148

The 2017 catalog was in effect through November 2017, and the 2018 catalog is effective as of December 1; catalog prices are net of the usual discounts.

At what amount should each of the four desks appear in the company's December 31, 2017, inventory, assuming that the company has adopted a lower-of-FIFO-cost-or-net realizable value (LCNRV) approach for valuation of inventories on an individual-item basis?

Item A		$
Item B		$
Item C		$
Item D		$

Reference no: EM131761209

Questions Cloud

What is the minimum transfer price in each case : Comm Devices (CD) is a division of Worldwide Communications, Inc. CD produces pagers and other personal communication devices.

Discuss contract evenly over the three year period : When ABC received the advance cash payment, the entry was recorded with a credit to a nominal account, Revenue. ABC's year end

What did you enjoy about the music : What did you enjoy about the music, what would have improved your experience, how did the performance fit or foil your expectations?

Determine the total increase or decrease in owners equity : Determine the total increase or decrease in owner's equity for January

Determine lcnrv approach for valuation of inventories : At what amount should each of the four desks appear in the company's December 31, 2017, inventory, assuming that the company has adopted a lower-of-FIFO-cost.

Significant criteria for choosing analytical tools : Also, what would you say is the least significant criteria for choosing analytical tools? Justify your answer.

Discuss ensured decor and lighting are appropriate projects : Based on my internship experience, answer each question. Discuss Ensured decor and lighting are appropriate projects work smoothly.

Qualitative and quantitative data analysis : Research some of the data mining tools available today for both qualitative and quantitative data analysis.

Describe the various legal and ethical issues : Describe the various legal and ethical issues that relate to specific phases of penetration testing, including the use of supporting examples.

User Account

All Pages