II Pin Company uses the LCNRV method on an individualitem ba

II. Pin Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2015, consists of products D,E.E.G.H, and I, Relevant per-unit data for these products appear below. Item Item Item Item Item Item Estimated selling price Cost Cost to complete Selling costs 180 165 140 135 165 135 110 45 15 120 120 75 54 45 45 15 30 120 45 2 35 0 Instructions Using the LCNRV rule, determine the proper unit value for statement of financial position reporting purposes at December 31, 2015, for each of the inventory items above. 1.

Solution

Item Selling Price (A) ( in €) Cost (B)( in €) Cost to Complete ( C) ( in €) Selling Cost (D) ( in €) NRV(E=A-C-D) ( in €) LCNRV( B or E) ( in €) D 180 110 45 15 120 110 E 165 120 45 27 93 93 F 140 120 35 15 90 90 G 135 120 50 30 55 55 H 165 75 45 15 105 75 I 135 54 45 30 60 54 Total 477 Hence, €477 of total Unit Value would be reported in Financial Statement