Problem 9-1 Finished Desks A B C D LINK TO TEXT LINK TO TEXT SAVE FOR LATER SUBM
ID: 2605363 • Letter: P
Question
Problem 9-1
Finished Desks
A
B
C
D
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Problem 9-1
Nash 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 $501 $534 $1,002 $1,169 FIFO cost per inventory list 12/31/17 523 501 924 1,068 Estimated cost to complete and sell 56 67 89 145 2018 catalog selling price 557 601 1,002 1,336The 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 $
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Explanation / Answer
Finished Desks A B C D 2017 catalog selling price 501 534 1002 1169 FIFO cost per inventory list 12/31/17 523 501 924 1,068 Estimated cost to complete and sell 56 67 89 145 2018 catalog selling price 557 601 1,002 1,336 Net realizable value (catalog selling price Less Estimated cost to complete and sell) 445 467 913 1024 Lower-of-cost-or-NR V 445 467 913 1024