Oriole Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homes and condominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31, 2020. Jim Alcide, controller for Oriole, has gathered the following data concerning inventory. At May 31, 2020, the balance in Orioles Raw Materials Inventory account was $477,360, and Allowance to Reduce Inventory to NRV had a credit balance of $27,670. Alcide summarized the relevant inventory cost and market data at May 31, 2020, in the schedule below. Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Orioles May 31, 2020, financial statements for inventory under the LCNRV rule as applied to each item in inventory. Devereaux expressed concern over departing from the historical cost principle. Cost Sales Price Net Realizable Value Aluminum siding $81,900 $74,880 $65,520 Cedar shake siding 100,620 109,980 99,216 Louvered glass doors 131,040 218,088 196,911 Thermal windows 163,800 181,116 163,800 Total $477,360 $584,064 $525,447

Determine the proper balance in Allowance to Reduce Inventory to NRV at May 31, 2020.

Balance in the Allowance to Reduce Inventory to NRV

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Oriole Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homes and condominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31, 2020. Jim Alcide, controller for Oriole, has gathered the following data concerning inventory. At May 31, 2020, the balance in Oriole's Raw Materials Inventory account was $477,360, and Allowance to Reduce Inventory to NRV had a credit balance of $27,670. Alcide summarized the relevant inventory cost and market data at May 31, 2020, in the schedule below. Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Oriole's May 31, 2020, financial statements for inventory under the LCNRV rule as applied to each item in inventory. Devereaux expressed concern over departing from the historical cost principle. Aluminum siding Cedar shake siding Louvered glass doors Thermal windows Cost $81,900 100,620 131,040 163,800 $477,360 Sales Price $74,880 109,980 218,088 181,116 $584,064 Net Realizable Value $65,520 99,216 196,911 163,800 $525,447 Total