Brief Exercise 91 x Your answer is incorrect Try again Prese

Brief Exercise 9-1 x Your answer is incorrect. Try again. Presented below is information related to Martinez Inc.s inventory. (per unit) Skis Boots Parkas Historical cost Selling price Cost to sell Cost to complete $427.50 477.00 42.75 72.00 $238.50 326.25 18.00 65.25 $119.25 165.94 5.63 47.81 Determine the following: the net realizable value for each item, and the carrying value of each item under LCNRV Item Cost NRV LCNRV 434.25 Boots 308.25 Parkas 160.31

Solution

item Cost NRV LCNRV Skis $ 427.50 $ 362.25 $ 362.25 Boots $ 238.50 $ 243.00 $ 238.50 Parkas $ 119.25 $ 112.50 $ 112.50 Thus, Net Realizable Value: Skis $ 362.25 Boots $ 243.00 Parkas $ 112.50 and, Carying Value: Skis $ 362.25 Boots $ 238.50 Parkas $ 112.50 Working: Selling Price Cost to Sell Cost to complete NRV Skis      477.00         42.75         72.00      362.25 Boots      326.25         18.00         65.25      243.00 Parkas      165.94           5.63         47.81      112.50