The inventory is valued on lower of cost or market value. The word market represents the net realizable value of the inventory as on the date of the inventory valuation . The net realizable value means the sale value of the inventory minus the expenses to sell the inventory. To calculate: the cost of the inventory destroyed.

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Chapter 5, Problem 22QS

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The inventory is valued on lower of cost or market value. The word market represents the net realizable value of the inventory as on the date of the inventory valuation. The net realizable value means the sale value of the inventory minus the expenses to sell the inventory.

To calculate: the cost of the inventory destroyed.

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