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Expert-verified Found in: Page 474 ### Intermediate Accounting (Kieso)

Book edition 16th
Author(s) Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Pages 1552 pages
ISBN 9781118743201

# Presented below is information related to Rembrandt Inc.’s inventory. (per unit) Skis Boots Parkas Historical cost $190.00$106.00 $53.00 Selling price 212.00 145.00 73.75 Cost to sell 19.00 8.00 2.50 Cost to complete 32.00 29.00 21.25 Determine the following: (a) the net realizable value for each item, and (b) the carrying value of each item under LCN (a) Net realizable value per unit for Skis, Boots, and Parkas equals$161, $108, and$50, respectively.

(b) Carrying value per unit for Skis, Boots, and Parkas equals $161,$106, and $50, respectively. See the step by step solution ### Step by Step Solution ## Calculate net realizable value for each item (a) Net realizable value for each item is calculated as follows:  Skis Boots Parkas Selling price$212 $145$73.75 Less: Cost to sell 19 8 2.50 Less: Cost to complete 32 29 21.25 Net Realizable Value $161$108 $50 ## Calculate carrying value of each item using LCNRV (b) Carrying value of each item using LCNRV is calculated as follows:  Skis Boots Parkas Historical Cost$190 $106$53 Net Realizable Value 161 108 50 Carrying Value as per LCNRV $161$106 \$50 ### Want to see more solutions like these? 