Question
Northridge Company has two products in its inventory. Information about the December 31, 2021, inventory is as follows: Product Total Cost Total Replacement Cost Total
Northridge Company has two products in its inventory. Information about the December 31, 2021, inventory is as follows:
| Product | Total Cost | Total Replacement Cost | Total Net Realizable Value |
| 101 | $120,000 | $110,000 | $100,000 |
| 102 | 90,000 | 85,000 | 110,000 |
The normal profit is 20% of total cost.
Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products.
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Building Accounting Systems Using Access 2010
Authors: James Perry, Richard Newmark
8th Edition
1111530998, 978-1111530990
