Tamarisk company uses the lcnrv method, on an individual-item basis, in pricing its inventory items. the inventory at december 31, 2020, 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 $140 $129 $111 $105 $129 $105 cost 88 94 94 94 59 42 cost to complete 35 35 29 41 35 35 selling costs 12 21 12 23 12 23 using the lcnrv rule, determine the proper unit value for balance sheet reporting purposes at december 31, 2020, for each of the inventory items above.

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Explanation:

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The cost value for each of the inventory item is as follows:

Product           Cost Price

D                        $88

E                        $94

F                        $94

G                        $94

H                        $59

I                          $42

Now, we determine the net realizable value for each of the product:

Net Realizable Value = Selling price - Cost to compete - Selling costs

Product           Net Realizable Value

D                       $93

E                        $73

F                        $70

G                        $41

H                        $82

I                          $47

Now, using the LCNRV (Lower of cost or Net Realizable Value) rule, the proper unit value for balance sheet reporting purposes at December 31, 2020, for each of the inventory items -

Product           LCNRV

D                        $88

E                        $73

F                        $70

G                        $41

H                        $59

I                          $42

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explanation:

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