E8.1 (L01) LCNRV
The inventory of Oheto Company on December 31, 2025, consists of the following items.
Net
Realizable
Part Quantity Cost per Unit Value
110 600 $ 95 $ 100
111 1,000 60 52
112 500 80 76
113 200 170 180
120 400 205 208
121 1,600 16 1
122 300 240 235
Part No. 121 is obsolete and has a realizable value of $1 each as scrap.
Instructions
1. Determine the inventory as of December 31, 2025, by the LCNRV method, applying this
method to each item.
2. Determine the inventory by the LCNRV method, applying the method to the total of the
inventory.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell), into
the yellow shaded input cells.
Per Unit
Net Lower-of-
Part No. Quantity Cost Realizable Total Cost Total NRV Cost-or-
Value NRV
1. Inventory value based on LCNRV - each item:
2. Inventory value based on LCNRV - total inventory:
, SOLUTION: E8.1 (L01) LCNRV
The inventory of Oheto Company on December 31, 2025, consists of the following items.
Net
Realizable
Part Quantity Cost per Unit Value
110 600 $ 95 $ 100
111 1,000 60 52
112 500 80 76
113 200 170 180
120 400 205 208
121 1,600 16 1
122 300 240 235
Part No. 121 is obsolete and has a realizable value of $1 each as scrap.
Instructions
1. Determine the inventory as of December 31, 2025, by the LCNRV method, applying this
method to each item.
2. Determine the inventory by the LCNRV method, applying the method to the total of the
inventory.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell), into
the yellow shaded input cells.
Per Unit
Net Lower-of-
Part No. Quantity Cost Realizable Total Cost Total NRV Cost-or-
Value NRV
110 600 $ 95 $ 100 $ 57,000 $ 60,000 $ 57,000
111 1,000 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
121 1,600 16 1 25,600 1,600 1,600
122 300 240 235 72,000 70,500 70,500
Totals $ 370,600 $ 341,300 $ 335,100
The inventory of Oheto Company on December 31, 2025, consists of the following items.
Net
Realizable
Part Quantity Cost per Unit Value
110 600 $ 95 $ 100
111 1,000 60 52
112 500 80 76
113 200 170 180
120 400 205 208
121 1,600 16 1
122 300 240 235
Part No. 121 is obsolete and has a realizable value of $1 each as scrap.
Instructions
1. Determine the inventory as of December 31, 2025, by the LCNRV method, applying this
method to each item.
2. Determine the inventory by the LCNRV method, applying the method to the total of the
inventory.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell), into
the yellow shaded input cells.
Per Unit
Net Lower-of-
Part No. Quantity Cost Realizable Total Cost Total NRV Cost-or-
Value NRV
1. Inventory value based on LCNRV - each item:
2. Inventory value based on LCNRV - total inventory:
, SOLUTION: E8.1 (L01) LCNRV
The inventory of Oheto Company on December 31, 2025, consists of the following items.
Net
Realizable
Part Quantity Cost per Unit Value
110 600 $ 95 $ 100
111 1,000 60 52
112 500 80 76
113 200 170 180
120 400 205 208
121 1,600 16 1
122 300 240 235
Part No. 121 is obsolete and has a realizable value of $1 each as scrap.
Instructions
1. Determine the inventory as of December 31, 2025, by the LCNRV method, applying this
method to each item.
2. Determine the inventory by the LCNRV method, applying the method to the total of the
inventory.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell), into
the yellow shaded input cells.
Per Unit
Net Lower-of-
Part No. Quantity Cost Realizable Total Cost Total NRV Cost-or-
Value NRV
110 600 $ 95 $ 100 $ 57,000 $ 60,000 $ 57,000
111 1,000 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
121 1,600 16 1 25,600 1,600 1,600
122 300 240 235 72,000 70,500 70,500
Totals $ 370,600 $ 341,300 $ 335,100
