Question
Office Furnishings reports inventory using the lower of cost and net realizable value (NRV). Below is information related to its year-end inventory. Inventory Quantity Unit
Office Furnishings reports inventory using the lower of cost and net realizable value (NRV). Below is information related to its year-end inventory.
| Inventory | Quantity | Unit Cost | Unit NRV |
|---|---|---|---|
| Furniture | 220 | $87 | $102 |
| Electronics | 52 | 420 | 360 |
Required: 1. Calculate the total recorded cost of ending inventory before any adjustments. 2. Calculate ending inventory using the lower of cost and net realizable value. 3. Record any necessary adjusting entry for inventory. 4. Determine the impact of the adjusting entry in the financial statements.
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Auditing And Assurance Services An Integrated Approach
Authors: Arens, Elder, Beasley
9th Edition
0130646202, 9780130646200
