Question

In: Accounting

Consider the following information pertaining to OldWest's inventory:     Product Quantity Cost Net Realizable Value Revolvers...

Consider the following information pertaining to OldWest's inventory:

   

Product Quantity Cost Net Realizable Value
Revolvers 17 $ 124 $ 159
Spurs 28 25 20
Hats 11 54 44
  • $3,152.

  • $3,402.

  • $3,244.

  • $3,747.


At what amount should OldWest report its inventory?

Solutions

Expert Solution

Product line Quantity (a) Unit cost (b) Total Cost (a x b) Net Realizable value LC&NRV per item (d) Total LC&NRV (a x d)
Revolvers 17 124                                   2,108 159                                  124                                 2,108
Spurs 28 25                                       700 20                                     20                                     560
Hats 11 54                                       594 44                                     44                                     484
Total $3,402 $3,152

OldWest should report its inventory at = $3,152

First option is correct.

Kindly comment if you need further assistance. Thanks


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