Answer Happy

Problem 6-12A Lower of cost and net realizable value LO4 The following information pertains to the physical inventory of Electronics Unlimited taken at December 31: Per Unit Units on Hand Product Audio equipment: 342 Wireless audio receivers Touchscreen MP3 players 257 Audio mixers 323 Audio stands 201 Video equipment: Televisions 477 5GB video cards 288 Satellite video recorders 209 Car equipment: GPS navigators 182 Double-DIN Car Deck with iPod/iPhone Control 167 and Aux Input Cost $183 218 172 98 293 178 613 140 193 NRV $194 198 188 80 248 166 642 166 208
Record the entry to write inventory down to LCNRV(major group). Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record the entry to write inventory down to LCNRV(separately to each product). Note: Enter debits before credits. Date General Journal Debit Credit Dec 31
Required: 1. Calculate the LCNRV for the: a. inventory by major group b. inventory, applied separately to each product. Inventory Items Units on Hand Audio equipment: Wireless audio receivers Touchscreen MP3 players Audio mixers Audio stands Subtotal Video equipment: Televisions 1GB video cards 0-1-114- 342 $ 257 323 201 477 288 300 Saved Per Unit Cost 183 218 172 98 293 178 040 $ NRV Help LCNRV applied to: b. a. Major Separately to Each Product Group $ 62,586 50,886 55,556 16,080 Total cost Total NRV 194 $ 62,586 $ 66,348 198 56,026 50,886 188 55,556 60,724 80 19,698 16,080 $ 193,866 $ 194,038 $ 193,866 248 $ 139,761 $ 118,296 166 51,264 47,808 010 1447 1470 118,296 47,808 400 447