Answer:
a. $335,100
b. $341,300
Explanation:
The computation is shown below:
(A) (B) (C) (A × B) (A × C)
Part Quantity Cost per Unit NRV Total cost Total NRV Lower value
110 600 95 100 $57,000 $60,000 $57,000
111 1000 60 52 $60,000 $52,000 $52,000
112 500 80 76 $40,000 $38,000 $38,000
113 200 170 180 $34,000 $36,000 $34,000
120 400 205 208 $82,000 $83,200 $82,000
121a 1600 16 1 $25,600 $1,600 $1,600
122 300 240 235 $72,000 $70,500 $70,500
Total $370,600 $341,300 $335,100
So
a. Under the LCNRV method, the inventory to each item would be $335,100
b. The total inventory would be $341,300
