Question
Pharoah Company uses a perpetual inventory system and the FIFO cost formula for valuing inventory. The company is now in the process of comparing
Pharoah Company 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 Pharoah Company's year end, December 31: Net Realizable Units Unit Cost Value per Unit Clothing 98 Jewellery 77 20 Greeting cards 44 1 NNK $6 22 Stuffed toys 52 11 39 (a) Determine the lower of cost and net realizable value of the ending inventory assuming Pharoah Company applies LCNRV on individual items. Lower of cost and net realizable value
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