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A company has the following information related to its four types of inventory at the end of the year. Inventory Number of Units Unit Cost Unit NRV Item A Item B Item C Item D 4,200 3,900 1,800 2,400 $16 52 34 24 $22 40 48 10 Required: (a) Calculate ending inventory using the lower of cost and net realizable value (NRV) method and (b) record any necessary adjustment to inventory. How would your answers change if Item B had unit NRV of $60 instead of $40?

A company has the following information related to its four types of inventory at the end of the year. Inventory Number of Units Unit Cost Unit NRV Item A Item B Item C Item D 4,200 3,900 1,800 2,400 $16 52 34 24 $22 40 48 10 Required: (a) Calculate ending inventory using the lower of cost and net realizable value (NRV) method and (b) record any necessary adjustment to inventory. How would your answers change if Item B had unit NRV of $60 instead of $40?

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter10: Inventory
Section: Chapter Questions
Problem 13EA: If a group of inventory items costing $15,000 had been omitted from the year-end inventory count,...
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A company has the following information related to its four types of inventory at the end of the year.

Inventory Number of Units Unit Cost Unit NRV

Item A

Item B

Item C

Item D

4,200

3,900

1,800

2,400

$16

52

34

24

$22

40

48

10

Required:
(a) Calculate ending inventory using the lower of cost and net realizable value (NRV) method and (b) record any necessary adjustment to inventory. How would your answers change if Item B had unit NRV of $60 instead of $40?

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