S6-7. (Learning Objective 3: Applying the Net Realizable Value to inventory) It is December 31, end of the year, and the controller of Grass Corporation is applying the Net Realizable Value

(NRV) to inventories. Before any year-end adjustments, Grass reports the following data:

Grass determines that the NRV of ending inventory is $48,000. Show what Grass should report for ending inventory and for cost of goods sold. Identify the financial statement where each item appears.

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Cost of goods sold........... Historical cost of ending inventory, as determined by a physical count.. $470,000 54,000