13. Presented below is information related to Rembrandt Inc.’s inventory. Determine the
following: (a) the net realizable value for each item, and (b) the carrying value of each item.
(Per unit) Skis Boots Parkas
Historical cost $190.00 $106.00 $53.00
Selling price 212.00 145.00 73.75
Cost to sell 19.00 8.00 2.50
Cost to
complete
32.00 29.00 21.25
(a) Net Realizable Value:
Skis: $212.00 - $19.00 - $32.00 = $161.00
Boots: $145.00 - $8.00 - $29.00 = $108.00
Parkas: $73.75 - $2.50 - $21.25 = $50.00
(b) Carrying Value:
Skis: $190.00
Boots: $106.00
Parkas: $53.00