Ben Company provided the following information during the year:

Materials and conversion cost
Product 1 - 3M
Product 2 - 3.6M

Estimated selling price
Product 1 - 4M
Product 2 - 6M

Estimated selling cost
Product 1 - 1.2M
Product 2 - 1.4M

General administration cost
Product 1 - 0.6M
Product 2 - 1.6M

The normal profit margin on sales
Product 1 - 1M
Product 2 - 1.5M

At year-end, the manufacture of the products has been completed but no selling cost has yet been incurred.

1. What amount should be reported as ending inventory using the LCNRV individual approach?

2. What amount should be reported as ending inventory using the LCNRV total approach?

Answer rating: 100% (QA)

1 Inventory Report for the Year ended using the individual LCNRV method LCNRV Means a Cost Reduction ... View the full answer