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In: Accounting

Using the lower of cost or net realizable method, for what amount would this firm report ending inventory?

InventoryquantityUnit costUnit Net Realizable Value
A20400700
B5015001250
C40400600

Using the lower of cost or net realizable method, for what amount would this firm report ending inventory?

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Expert Solution

Inventory quantity Unit cost Unit Net Realizable Value Valued at Total Value
a b c d e =lower of c or d f=b*e
A 20 $            400 $                                           700 $                         400 $           8,000
B 50 $        1,500 $                                       1,250 $                     1,250 $         62,500
C 40 $            400 $                                           600 $                         400 $         16,000
Total 110 $         86,500
Ending invenroty = $86500

ekkarill92 answered 2 years ago
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