Ask Question
7 August, 13:38

Presented below is information related to Waterway Inc.'s inventory. (per unit) Skis Boots Parkas Historical cost $370.50 $206.70 $103.35 Selling price 413.40 282.75 143.81 Cost to sell 37.05 15.60 4.88 Cost to complete 62.40 56.55 41.44 Determine the following: the net realizable value for each item, and the carrying value of each item under LCNRV.

+4
Answers (1)
  1. 7 August, 17:30
    0
    (1) $313.95; $313.95

    (2) $210.6; $206.70

    (3) $97.49; $97.49

    Explanation:

    Skis:

    Net realizable value = selling price - cost to sell - cost to complete

    = 413.40 - 37.05 - 62.40

    = $313.95

    Historical cost = $370.50

    LCNRV = lower of historical cost or net realizable value

    = $313.95

    Boots:

    Net realizable value = selling price - cost to sell - cost to complete

    = 282.75 - 15.60 - 56.55

    = $210.6

    Historical cost = $206.70

    LCNRV = lower of historical cost or net realizable value

    = $206.70

    Parkas:

    Net realizable value = selling price - cost to sell - cost to complete

    = 143.81 - 4.88 - 41.44

    = $97.49

    Historical cost = $103.35

    LCNRV = lower of historical cost or net realizable value

    = $97.49
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Presented below is information related to Waterway Inc.'s inventory. (per unit) Skis Boots Parkas Historical cost $370.50 $206.70 $103.35 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers