Hey! I need help with the following accounting problem where we have to calculate the amount of ending inventory at lower-of-cost or net realizable value with the info provided - thank you!! Marigold Corp. applied FIFO to its inventory and got the following results for its ending inventory.CamerasBlu-ray playersiPods116 units at a cost per unit of $61167 units at a cost per unit of $72127 units at a cost per unit of $89The net realizable value of each of these products at year-end was cameras $85, Blu-ray players $56, and iPods $73.Determine the amount of ending inventory at lower-of-cost-or-net realizable value.Ending inventory

Name: Hey! I need help with the following accounting problem where we have t
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Hey! I need help with the following accounting problem where we have to calculate the amount of ending inventory at lower-of-cost or net realizable value with the info provided - thank you!! Marigold Corp. applied FIFO to its inventory and got the fo

Answered: Marigold Corp. applied FIFO to its…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

Hey! I need help with the following accounting problem where we have to calculate the amount of ending inventory at lower-of-cost or net realizable value with the info provided - thank you!!

Marigold Corp. applied FIFO to its inventory and got the following results for its ending inventory.
Cameras
Blu-ray players
iPods
116 units at a cost per unit of $61
167 units at a cost per unit of $72
127 units at a cost per unit of $89
The net realizable value of each of these products at year-end was cameras $85, Blu-ray players $56, and iPods $73.
Determine the amount of ending inventory at lower-of-cost-or-net realizable value.
Ending inventory

Expert Solution

Step 1: Define Inventory Valuation

Inventort Valuation: It implies a process in which the businesses assign monetary value to their inventories and present the ending inventory in the statement of financial position based on that monetary valuation.

According to IAS 2, the inventory should be valued by the businesses at the lower of NRV (Net realizable Value) or cost, which ever is lower.

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions