FlinFlon Limited sells three products whose prices are sensitive to price fluctuations. The following inventory information is available for these products at March 31, 2018:ProductUnitsUnit CostNet Realizable ValueA25$ 7$ 7B30 6 8C60 11 10Instructions: Calculate FlinFlon's inventory at the Lower of Cost and Net Realizable Value (LCNRV).Prepare any journal entry required to record the LCNRV, assuming that FlinFlon uses a perpetual inventory system.

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Answered: FlinFlon Limited sells three products…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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FlinFlon Limited sells three products whose prices are sensitive to price fluctuations. The following inventory information is available for these products at March 31, 2018:

Product	Units	Unit Cost	Net Realizable Value
A	25	$ 7	$ 7
B	30	6	8
C	60	11	10

Instructions:

Calculate FlinFlon's inventory at the Lower of Cost and Net Realizable Value (LCNRV).
Prepare any journal entry required to record the LCNRV, assuming that FlinFlon uses a perpetual inventory system.

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