Lower of Cost and NRV 5. Information on ABC Co.'s December 31, 20x1 inventory is shown below: Product A Product B Product C Purchase price Freight-in Selling price Freight-out General overhead costs 100,000 250,000 300,000 12,000 30,000 36,000 570,000 11,400 17,100 210,000 300,000 10,500 6,300 75,000 9,000 How much is the valuation of ABC's total inventory on December 31, 20x1? a. 983,100 b. 938,100 c. 763,000 d. 673,000

Lower of Cost and NRV 5. Information on ABC Co.'s December 31, 20x1 inventory is shown below: Product A Product B Product C Purchase price Freight-in Selling price Freight-out General overhead costs 100,000 250,000 300,000 12,000 30,000 36,000 570,000 11,400 17,100 210,000 300,000 10,500 6,300 75,000 9,000 How much is the valuation of ABC's total inventory on December 31, 20x1? a. 983,100 b. 938,100 c. 763,000 d. 673,000

Name: Lower of Cost and NRV5. Information on ABC Co.'s December 31, 20x1 in
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Description: Lower of Cost and NRV5. Information on ABC Co.'s December 31, 20x1 inventory isshown below:Product AProduct BProduct CPurchase priceFreight-inSelling priceFreight-outGeneral overhead costs100,000250,000300,00012,00030,00036,000300,00075,000570,00011

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Question

Lower of Cost and NRV
5. Information on ABC Co.'s December 31, 20x1 inventory is
shown below:
Product A
Product B
Product C
Purchase price
Freight-in
Selling price
Freight-out
General overhead costs
100,000
250,000
300,000
12,000
30,000
36,000
300,000
75,000
570,000
11,400
17,100
210,000
10,500
6,300
9,000
How much is the valuation of ABC's total inventory on December
31, 20x1?
a. 983,100
b. 938,100
c. 763,000
d. 673,000

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