questions 7

Font Paragraph Styles d) Dr Warranty Expense Cr Provision for Warranties $1,200 $1,200 7. A company has four products (E, F, G, H) and has 100 units of each in stock. The cost (Cost) and net realisable value (NRV) of each of the products are as follows: Product E F G H Cost $10 $8 $8 $6 NRV $7 $7 $9 $10 What should the value of inventory in the balance sheet be according to the Lower of Cost or NRV rule? a) $3,200 b) $2,800 c) $3,700 d) none of the above