question archive Allegro Music sells musical equipment

Allegro Music sells musical equipment

Subject:AccountingPrice:2.87 Bought7

Allegro Music sells musical equipment. A detailed list of Allegro Music’s inventory follows:
 

Inventory item Number of units — year end Cost per unit Total cost NRV* per unit Total NRV LCNRV**
Chime Set 3 $750 2,250 790 2,370  
Cymbals 4 70 280 85 340  
Drum Sets 3 450 1,350 525 1,575  
Flutes 5 650 3,250 775 3,875  
Violins 3 1,500 4,500 1,650 4,950  
Guitars 7 62 434 45 315  
Guitars-acoustic 9 125 1,125 132 1,188  
Guitars-electric 12 190 2,280 225 2,700  
Keyboards 4 2,200 8,800 2,100 8,400  
Pianos-entry 3 2,300 6,900 2,500 7,500  
Pianos-introductory 5 4,500 22,500 4,900 24,500  
Pianos-intermediate 2 12,000 24,000 14,200 28,400  
Pianos-professional 1 22,500 22,500 25,000 25,000  
Pianos-upright 2 5,000 10,000 7,500 15,000  
Recorders 25 7 175 10 250  
Saxophones 3 575 1,725 675 2,025  
Triangles 5 55 275 65 325    
Xylophones 4 245 980 300 1,200  
      TOTAL= 113,324   Total= 129,913  

*NRV = net realizable value
**LCNRV = lower of cost and net realizable value

Required:
Complete the schedule above and prepare the year-end adjusting entry to record the inventory at the lower of cost and net realizable value.

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