COLATOR FULL SCREE xercise 6-12 X Your answer is incorrect. Try again. Marigold
ID: 2544880 • Letter: C
Question
COLATOR FULL SCREE xercise 6-12 X Your answer is incorrect. Try again. Marigold Corp. uses the lower-of-cost-or-net realizable value basis for its inventory. The following data are available at December 31. Units Unit Cost Net Realizable Value Item Cameras: Minolta Canon 5 12 $179 145 $159 172 Light meters: 101 132 123 Vivitar 14 Kodak 17 128 Determine the amount of the ending inventory by applying the lower-of-cost-or-net realizable value basis The ending inventory LINK TO TEXT SAVE Question Attempts: 2 of 3 used cy Policy I2000-2018 John Wiley &Sons;,Inc. All Rights Reserved. A Division of 2ohn Wiley & Sons. Inc,Explanation / Answer
Solution:
We need to find out the lower of cost or net realizable value for each product or item. Working as follows:
Item
Units
Unit Cost
Net Realizable Value
Lower of Unit Cost and Net Realizable Value
Total Inventory Value
Cameras:
(A)
(B)
(C )
(A*C)
Minoita
5
$179
$159
$159
$795
Canon
12
$145
$172
$145
$1,740
Light meters:
Vivitar
14
$132
$101
$101
$1,414
Kodak
17
$123
$128
$123
$2,091
$6,040
So, the total ending inventory = $6,040
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Item
Units
Unit Cost
Net Realizable Value
Lower of Unit Cost and Net Realizable Value
Total Inventory Value
Cameras:
(A)
(B)
(C )
(A*C)
Minoita
5
$179
$159
$159
$795
Canon
12
$145
$172
$145
$1,740
Light meters:
Vivitar
14
$132
$101
$101
$1,414
Kodak
17
$123
$128
$123
$2,091
$6,040
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