Question
Loft Co. reviewed its LIFO inventory values for proper pricing at year-end. The following summarizes two inventory items examined for the lower of cost or
Loft Co. reviewed its LIFO inventory values for proper pricing at year-end. The following summarizes two inventory items examined for the lower of cost or market:
Inventory item #1
Original Cost $210000
Replacement Cost $150000
Net Realizable Value $240000
Net Realizable Value Less Profit Margin $208000
Inventory item #2
Original Cost $400000
Replacement Cost $370000
Net Realizable Value $410000
Net Realizable Value Less Profit Margin $405000
What amount should Loft include in inventory at year-end, if it uses the total of the inventory to apply the lower of cost or market?
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