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Good Units Per Unit Cost Retail Price Selling Costs 1 2 3 4

For each item in the document, the assistant provides a concise 3 sentence or less summary of the key information and requirements: Item 1: Tri Star Inc uses the LCNRV method. It provides unit level information on 4 items including good units, cost per unit, retail price, and selling costs. The requirement is to determine the unit value for each item using LCNRV to report in the balance sheet at year end. Item 2: Lan Mills Inc bought land for $34,000 that was divided into groups A, B, and C based on attractiveness. The division cost $10,000. The requirement is to determine the income earned at year end using the information provided on original pieces, price per

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Ahmed Samad
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65 views2 pages

Good Units Per Unit Cost Retail Price Selling Costs 1 2 3 4

For each item in the document, the assistant provides a concise 3 sentence or less summary of the key information and requirements: Item 1: Tri Star Inc uses the LCNRV method. It provides unit level information on 4 items including good units, cost per unit, retail price, and selling costs. The requirement is to determine the unit value for each item using LCNRV to report in the balance sheet at year end. Item 2: Lan Mills Inc bought land for $34,000 that was divided into groups A, B, and C based on attractiveness. The division cost $10,000. The requirement is to determine the income earned at year end using the information provided on original pieces, price per

Uploaded by

Ahmed Samad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Question 1

Tri Star Inc., use the LCNRV principal.

Good Units Per unit Cost Retail price Selling costs


1 14562 4.5 6 1.5
2 1182 12 20 3
3 1264 1.5 4 0.5
4 895 4.1 5 1

Required

For each item, determine the unit value using LCNRV to be reported in the balance sheet at year
end.

Solution :{_______}

Question 2

Lan Mills Inc, bought a pieces of land worth $34,000. The pieces of land were divided into
groups given their attractiveness and other features. The company has to incur a cost of $10,000
for the division of lands.

Information on division of lands in to groups is as follows:

Group Pieces of lands Price per piece of land


A 5 $1,200
B 8 2,500
c 6 3,200

A total of $1,200 was spent as operating expenses for the year.

The reaming pieces of land at the year-end are as follows:


A 3
B 4
C 1
Required
Determine the income earned at year end

Solution: {______}

Question 3

TriStar Inc., has the following information available regarding its inventory:
.
Cost Retail
Beginning inventory $45,000 $65,000
Purchases 25,000 45,000
Purchase return 5,000 8,000
Freight-In is $120
Abnormal damage is $1,000
Normal damage is $400
Net Markup is $1,200
Net Markdown is $300
Sales 70,000

Required

Compute the ending inventory at retail using

a. LCNRV {______}

b. Cost method {______}

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