Answer:
Net Realizable Value
A $450
B $430
C $640
D $1,000
OR
Net Lower of Cost or NRVA
A $450
B $430
C $640
D $1,000
Explanation:
Calculation for the amount that each of the four desks should appear in the company’s December 31, 2020
Using this formula
Net Realizable Value = Catalog selling price in the year 2021 - Estimated costs to complete and sell.
Item Cost NET REALIZABLE VALUE
A =(47*10 desks) 470 450(50*10desks-5*10desks)
B =(45*10 desks)450 430(54*10desks-11*10desks)
C =(83*10 desks)830 640(90*10desks-26*10desks)
D =(96*10 desks)960 1,000(120*10desks-10*10desks)
OR
Item Cost NET LOWER OF COST or NRVA
A =(47*10 desks) 470 450(50*10desks-5*10desks)
B =(45*10 desks)450 430(54*10desks-11*10desks)
C =(83*10 desks)830 640(90*10desks-26*10desks)
D =(96*10 desks)960 1,000(120*10desks-10*10desks)
THEREFORE the amount that each of the four desks should appear in the company’s December 31, 2020 will be :
NET REALIZABLE VALUE
A $450
B $430
C $640
D $1,000
OR
NET LOWER OF COST or NRVA
A $450
B $430
C $640
D $1,000