You have been provided with the following information regarding R-Steel Inc.'s inventory for March, April, and May.

Instructions
(a) Calculate the cost and net realizable value of R-Steel's inventory at
(1) March 31,
(2) April 30,
(3) May 31.
(b) Prepare any journal entry required to record the LCNRV of the steel inventory at
(1) March 31,
(2) April 30,
(3) May 31. Assume that R-Steel uses a perpetual inventory system.
(c) Are there any differences in recording LCNRV for companies reporting using ASPE rather than IFRS?

Transcribed Image Text:

March 31 April 30 May 31 Steel Inventory (in tonnes) 3,000 2,500 2,800 Cost/Tonne $725 715 725 NRV/Tonne $740 710 725