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  3. question 3. (30 points) bora company uses the lcnr

QUESTION 3. (30 POINTS) Bora Company uses the LCNRV method to evaluate inventory for financial...

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QUESTION 3. (30 POINTS) Bora Company uses the LCNRV method to evaluate inventory for financial reporting purposes. Information related to inventory at December 31, 2020 appears below. 40 units Item A Item B Item C Quantity 50 units 100 units Estimated Selling Price per unit $70 $35 $30 Purchasing price per unit 40 50 30 Freight-in (transportation cost per unit 5 5 5 5 Cost to complete per unit 9 5 7 Cost to sell per unit G 3 31 Required a) Determine the correct value to be reported for inventory on the Financial Position Statement applying LCNRV for each item individually. Prepare the necessary journal entry if needed using the loss method. (5+5 = 10 points) Item A Item B Item C Total inventory LCNRV JOURNAL ENTRY DATE ACCOUNT TITLES DEBIT CREDIT b) Determine the correct value to be reported for inventory on the Financial Position Statement applying LCNRV for inventory in total. Prepare the necessary journal entry if needed using the loss method. (5+5 = 10 points) Total Inventory LCNRV JOURNAL ENTRY DATE ACCOUNT TITLES DEBIT CREDIT ACT 410 Intermediate Accounting i-Summer 2020 Page 56 Final Week Assessment (20%) c) What should the company do if during 2021 total NRV for inventory rises above total original cost? (10 points)

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