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Identifying a Loss in Applying Lower-of-Cost-or-Net Realizable Value Information related to three products of Adelle Corporation follows. Product A Product B Product C Estimated selling
Identifying a Loss in Applying Lower-of-Cost-or-Net Realizable Value
Information related to three products of Adelle Corporation follows.
Product A | Product B | Product C | |
---|---|---|---|
Estimated selling price | $48 | $60 | $67 |
Original cost (FIFO) | 36 | 48 | 43 |
Cost of disposal | 5 | 10 | 7 |
Cost of completion | 12 | 0 | 5 |
a. What inventory value is reported in the balance sheet for total inventory under the lower-of-cost-or-net realizable value rule assuming each individual item is evaluated?
Product A inventory value | Answer | |
Product B inventory value | Answer | |
Product C inventory value | Answer | |
Total inventory value | Answer |
b. What inventory value is reported in the balance sheet for total inventory under the lower-of-cost-or-net realizable value rule assuming that the inventory in total is evaluated?
Total inventory value
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