Question
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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Fundamental Accounting Principles Volume 2
Authors: John Wild, Ken Shaw, Barbara Chiappetta
21st Edition
0077716663, 978-0077716660
