Metlock Company uses the LCNRV method, on an individual-item basis, in pricing i
ID: 2525699 • Letter: M
Question
Metlock Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2017, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below.
Item D
Item E
Item F
Item G
Item H
Item I
Using the LCNRV rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2017, for each of the inventory items above.
Item D
Item E
Item F
Item G
Item H
Item 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 25Explanation / Answer
NRV = Estimated selling price -Cost to complete -Selling costs Cost NRV LCNRV proper unit value Item D 95 100 95 Item E 101 78 78 Item F 101 75 75 Item G 101 44 44 Item H 63 88 63 Item I 45 50 45