E109 similar to Question Help Case Curious Company sels case

E10-9 (similar to) Question Help Case Curious Company sels cases for smart phones and notepad computers. Case Curious groups inventory by the device manufacturer for which the case is made. Case Curious provided the following information regarding inventory at the end of the current year EE (Click the icon to view the data.) (Click the icon to view the abbreviation definitions.) Read the requirements. Complete the table below to identify the market value per unit amounts for each product, the total cost amounts, and the total market value amounts. Cost per Data Table Group # Manufacturer #Of Units Unit Total Cost per Unit Total Market 350 $ 1,750 13,300 15,050 Smart phone case General Tech Notepad caseGeneral Tech Group # Manufacturer CRC #0f Units SP Disposal NPM Cost Subtotal - General Tech 350 $ 2 $ 5 S Smart phone case General Tech 6 Notepad case Smart phone case Pacific Base Notepad case 18 $ 27 15 26 General Tech 18 15 19 800 9 7200 850 1815.300 Smart phone case Pacific Base 800 Notepad case Pacfic Base Pacific Base 15 850 17 18 Subtotal Pacific Base $ 22,500 $ 37,550 Total Print Done

Solution

First of all Understanding this terms are important.

CRC -Current Replacement Cost

SP-Selling Price

NPM -Normal Profit Margin

We recognise Inventory at Lower Of Cost Or Market Value(NRV net realisable Value).

In Identifying Market Value of Inventory,

Market = Current Replacement Cost

      If Current Replacement Cost > Net Realizable Value (NRV),
          then NRV is Market.

      If Current Replacement Cost < (NRV - Normal Profit Margin),
          then (NRV - Normal Profit Margin) is Market.

Where NRV =Estimated S.P - Cost Of Manufacture and Disposal

We Have 4 Items Making a table will be easy to compare between 3 CRC,NRV(upperlimit) and NRV=Normal Profit Margin(Lower Limit)

The Middle Value of this 3 will be MARKET VALUE

So Firstly Find Market Value And Compare with Cost.

Market Per Unit

Middle Value of 1,2,3

6

CRC = NRV-NPM so Choose 6,any way

(this to compare Lower of cost or Market Value)

Now Lets Complete The Table In Question

Cost

per Unit

Market = Current Replacement Cost       If Current Replacement Cost > Net Realizable Value (NRV),           then NRV is Market.       If Current Replacement Cost < (NRV - Normal Profit Margin),           then (NRV - Normal Profit Margin) is Market. Where NRV =Estimated S.P - Cost Of Manufacture and Disposal We Have 4 Items Making a table will be easy to compare between 3 CRC,NRV(upperlimit) and NRV=Normal Profit Margin(Lower Limit) The Middle Value of this 3 will be MARKET VALUE