Sunland Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2017, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below.
Item D Item E Item F Item G Item H Item I
Estimated selling price $142 $130 $112 $106 $130 $106
Cost 89 94 94 94 59 42
Cost to complete 35 35 30 41 35 35
Selling costs 12 21 12 24 12 24
Using the LCNRV rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2017, for each of the inventory items above.
Item D $
Item E $
Item F $
Item G $
Item H $
Item I $

Item D $124 (cost)

Item E $109 (NRV)

Item F $100 (NRV)

Item G $82 (NRV)

Item H $94 (Cost)

Item I $77 (Cost)

Explanation:

Sunland Company uses the LCNRV method.

The LCNRV is a generally acceptable Accounting Practice rule which states that items of stock should be valued at the lower of:

i. Cost of purchasing the stock items or

ii. The net realizable value of the stock items at their current state.

Records that will go to the balance sheet in the case of this firm is :

Step: determine the costs and Net realizable Value based on each item:

D: Cost = $89

Add cost to complete = $35

Total cost = $124

D: Net Realizable value:

Selling price = $142

Less Selling costs = $12

Net realizable value = $130.

For D we go with Cost which is lower ($124)

E: Cost = $94

Add cost to complete = $35

Total cost = $129

E: Net Realizable value:

Selling price = $130

Less Selling costs = $21

Net realizable value = $109.

For E we go with Net Realizable Value, which is lower ($109)

F: Cost = $94

Add cost to complete = $30

Total cost = $124

F: Net Realizable value:

Selling price = $112

Less Selling costs = $12

Net realizable value = $100.

For F we go with Net Realizable Value, which is lower ($100)

G: Cost = $94

Add cost to complete = $41

Total cost = $135

G: Net Realizable value:

Selling price = $106

Less Selling costs = $24

Net realizable value = $82.

For G we go with Net Realizable Value, which is lower ($82)

H: Cost = $59

Add cost to complete = $35

Total cost = $94

H: Net Realizable value:

Selling price = $130

Less Selling costs = $12

Net realizable value = $118.

For H we go with Cost, which is lower ($94)

I: Cost = $42

Add cost to complete = $35

Total cost = $77

I: Net Realizable value:

Selling price = $106

Less Selling costs = $24

Net realizable value = $82

For I we go with Cost, which is lower ($77)

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answerthat 50% of all cases go to trial;