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Valley Inc. has compiled the following information concerning items in its inventory at December 31: Item Quantity Cost per Unit Net Realizable Value (NRV)per unit
Valley Inc. has compiled the following information concerning items in its inventory at December 31:
Item | Quantity | Cost per Unit | Net Realizable Value (NRV)per unit |
A
| 100 | $45 | $50 |
B
| 80 | 160 | 120 |
C
| 50 | 100 | 110 |
Required:
- (4 marks) The carrying amount of the total inventory of Valley Inc. using the lower of cost or net realizable value ( LCNRV) rule applied on an item by item basis is:
__________________________________
- (2 marks) The loss due to inventory write down to LCNRV is:
_____________________________________
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