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Accoutning Help Problem 9-2 Lower of cost and net realizable value [LO9-1J Almaden Hardware Store sells two distinct types of products, tools and paint products.
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Problem 9-2 Lower of cost and net realizable value [LO9-1J Almaden Hardware Store sells two distinct types of products, tools and paint products. Information pertaining to its 2016 year-end inventory is as follows: Per Unit Net Realizable Inventory, Quantity Cost Value by Product Type Tools 120 $4.00 $4.50 Hammers Saws 100 9.00 8.00 Screwdrivers 200 1.00 1.60 Paint products 1-gallon cans 400 5.00 4.00 Paint brushes 120 3.00 3.50 Required 1. Determine the book value of inventory at year-end, assuming the lower of cost and net realizable value rule is applied to (a) individual products, (b) product type, and (c) total inventory. Lower of cost and NRV By Total Realizable Individual Product cost Value Products Type Product Inventory Tools Hammers Saws Screwdrivers 0 Total tools Paint products: 1-gallon cans Paint brushes 0 0 Total paintStep by Step Solution
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