A company reports inventory using the lower cost and net realizable value. Below is information related to its year-end inventory: Inventory Quantity Cost NRV Unit A 15 $38 $40 Unit B 23 41 38 Unit C 17 29 33 Unit D 20 15 14 a. Calculate ending inventory under the lower of cost and net realizable value. b. Prepare the necessary adjusting entry to inventory as a journal entry worksheet.

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter6: Inventories
Section: Chapter Questions
Problem 4E: Perpetual inventory using LIFO Assume that the business in Exercise 6-3 maintains a perpetual...
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A company reports inventory using the lower cost and net realizable value. Below is information
related to its year-end inventory:
Inventory Quantity Cost NRV
Unit A
15
$38 $40
Unit B
23
41
38
Unit C
17
29
33
Unit D
20
15
14
a. Calculate ending inventory under the lower of cost and net realizable value.
b. Prepare the necessary adjusting entry to inventory as a journal entry worksheet.
Transcribed Image Text:A company reports inventory using the lower cost and net realizable value. Below is information related to its year-end inventory: Inventory Quantity Cost NRV Unit A 15 $38 $40 Unit B 23 41 38 Unit C 17 29 33 Unit D 20 15 14 a. Calculate ending inventory under the lower of cost and net realizable value. b. Prepare the necessary adjusting entry to inventory as a journal entry worksheet.
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