Valix Finacc vol 1 Problem 7-29

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 7-29

                                                                                                Lower of

                                                                        Units              cost or NRV           Inventory value

Materials:

       R                                                               1,000                   100                           100,000                       

       S                                                                2,000                   250                           500,000

       T                                                                3,000                   300                           900,000

Goods in process:

        X                                                              4,000                   480                        1,920,000

        Y                                                              5,000                   620                        3,100,000

Finished goods:

        A                                                              2,000                   790                       1,580,000

        B                                                              2,000                   730                       1,460,000

Valuation at lower of cost or NRV                                                                         9,560,000