The controller of Cox Company is applying the Lower of Cost and Net Realizable Value to its ending i
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
