Scotts Sporting Stores Inc. reported the following cost and net realizable value information for inventory at December

Question:

Scott€™s Sporting Stores Inc. reported the following cost and net realizable value information for inventory at December 31:

Required:
a. Calculate the ending inventory balance for skates and running shoes using the lower of cost and net realizable value for each item.
b. Calculate the ending inventory balance for skates and running shoes using the historical unit costs provided.
c. Compare the difference in the ending inventory amounts under the two approaches. Which method provides a more faithful representation of the inventory value?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...