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5 H.T. Tan Company is preparing the annual financial statements dated December 31 of the current year. Ending inventory information about the five major items
5 H.T. Tan Company is preparing the annual financial statements dated December 31 of the current year. Ending inventory information about the five major items stocked for regular sale follows: ENDING INVENTORY, CURRENT YEAR Unit Cost When Acquired (FIFO) $ 19 Net Realizable Value (Market) at Year-End Quantity 20 Item on Hand points A 68 B 98 28 D 88 E 368 eBook Print 47 59 37 12 $ 22 37 55 32 17 Required: Compute the valuation that should be used for the current year ending inventory using lower of cost or net realizable value applied on an item-by-item basis. Total Net References Item Quantity Total Cost Realizable Value Lower of Cost or NRV A 68 B 98 28 D 88 E 368 Total $ 0 $ 0 $ 0
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