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Reflex Corporation sells three products. The inventory valuation of these products is shown below for years 2016 and 2017.
The partial comparative income statements for the two years follow:
Required:
- If Reflex values its inventory using LCNRV/unit basis, complete the 2016 and 2017 cost, net realizable value, and LCNRV calculations.
- Complete the partial income statements for 2016 using cost, LCNRV/unit basis, and LCNRV/group basis to calculate ending inventory and cost of goods sold.
- Complete the partial income statements for 2017 using cost, LCNRV/unit basis, and LCNRV/group basis to calculate ending inventory and cost of goods sold.
- Which inventory valuation would yield the same gross profits for 2016 and 2017?
- Cost and LCNRV/unit basis
- Cost and LCNRV/group basis
- Cost basis.
- Which methods yield the maximum combined profits for both years?
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