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A company reports inventory using the lower of cost and net realizable value. See the following information related to its year-end inventory: Inventory Quantity Cost
A company reports inventory using the lower of cost and net realizable value. See the following information related to its year-end inventory:
Inventory | Quantity | Cost | NRV | ||||
Item A | 150 | $ | 29 | $ | 34 | ||
Item B | 50 | 34 | 24 | ||||
a. Calculate ending inventory for the company under the lower of cost and net realizable value.
b. Record the necessary adjusting entry to inventory.
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