Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. problem 6-13a lower of cost or nrv lo6 a physical

Problem 6-13A Lower of cost or NRV LO6 A physical inventory of Liverpool Company taken...

70.2K

Verified Solution

Question

Accounting

Problem 6-13A Lower of cost or NRV LO6 A physical inventory of Liverpool Company taken at December 31 reveals the following.

Per Unit Inventory Items Units Cost NRV Car audio equipment Speakers 345 $ 90 $ 98 Stereos 260 111 100 Amplifiers 326 86 95 Subwoofers 204 52 41 Security equipment Alarms 480 150 125 Locks 291 93 84 Cameras 212 310 322 Binocular equipment Tripods 185 70 84 Stabilizers 170 97 105 Total Required Compute the lower of cost or NRV for the inventory applied separately to each item. CHECK FIGURE: $273,054 If the market amount is less than the recorded cost of the inventory, then record the LCNRV adjustment to the Merchandise Inventory account.

image

Complete problem 6-13A and answer the questions below. What is the accounting principle that requires that information be complete, neutral and free from error so that assets and profits are not overstated and liabilities and expenses are not understated. What is the total cost of all inventory? What is the Lower of Cost or Net Realizable Value for all inventory? What is the amounted needed to adjust inventory to its NRV

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students