Ivanhoe's Gift Shop uses a perpetual inventory system and the FIFO cost formula for valuing inventory....

Transcribed Image Text:

Ivanhoe's Gift Shop uses a perpetual inventory system and the FIFO cost formula for valuing inventory. The company is now in the process of comparing the cost of its inventory with its net realizable value. The following data are available at Ivanhoe's Gift Shop's year end, December 31: Net Realizable Value per Unit $7 Units Unit Cost Clothing 96 $9 Jewellery 69 20 Greeting cards 40 2 Stuffed toys 58 13 40 27 4259 (a) Determine the lower of cost and net realizable value of the ending inventory assuming Ivanhoe's Gift Shop applies LCNRV on individual items Lower of cost and net realizable value Ivanhoe's Gift Shop uses a perpetual inventory system and the FIFO cost formula for valuing inventory. The company is now in the process of comparing the cost of its inventory with its net realizable value. The following data are available at Ivanhoe's Gift Shop's year end, December 31: Net Realizable Value per Unit $7 Units Unit Cost Clothing 96 $9 Jewellery 69 20 Greeting cards 40 2 Stuffed toys 58 13 40 27 4259 (a) Determine the lower of cost and net realizable value of the ending inventory assuming Ivanhoe's Gift Shop applies LCNRV on individual items Lower of cost and net realizable value