Intermediate Accounting Assignment
You must include all supporting calculations with your solutions and these supporting calculations must be prepared with an Excel spreadsheet. You must submit one printed copy of the Excel spreadsheet which contains your case solution and a second printed copy displaying the formulas contained in each cell of your spreadsheet.
Raider Industries must follow the Lower of Cost or Net Realizable Value (LCNRV) Rule for its inventory. The following information was taken from Raider's inventory records as of December 31, 2018:
Product ID Quantity Cost Selling Price
Number on Hand per Unit per Unit
Item #101 8,000 $120.00 $110.00
Item #102 6,500 24.00 30.00
Item #103 12,000 14.00 16.00
Item #104 5,400 8.00 12.00
Item #105 1,000 150.00 160.00
Item #201 1,200 160.00 180.00
Item #202 3,000 10.00 11.00
Item #203 8,000 32.00 34.00
Raider has the following costs to sell associated with all of itsproducts:
1. Sales commission of 10% of the selling price for each product
2. Packaging and delivery costs of 5% of the cost of each product
Requirements:
Complete each of the following independent requirements:
a) Determine the carrying value of inventory at 12/31/18 assuming that Raider appliesthe LCNRVRule to each specific product in its inventory. Also, assuming that Raider would record any loss recognized as a separate line item in its income statement, determine the amount of the loss (if any) that Raider would record for 2018.
b) Determine the carrying value of inventory at 12/31/18 assuming that Raider applies the LCNRV Rule to its total inventory. Also, assuming that Raider would record any loss recognized as a separate line item in its income statement, determine the amount of the loss (if any) that Raider would record for 2018.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.