WP NWP Assessment Builder UI App xWP NWP Assessment Player Ul Appli Xn.wiley.com/was/ui/v2/assessment-player/index.html?launchld%33ccc3c1a-22f0-4064-a82c-de9671bd4980#/questione: Chapter 6Question 5 of 5Sunland Frame Camera Shop uses the lower-of-cost-or-net realizable value basis for its inveDecember 31.Net RealizableItemUnitsCost per UnitValue per UnitCameras:Minolta$163$154Canon154156Light Meters:Vivitar12120112Kodak17120135What amount should be reported for inventory on Sunland Frame Camera Shop's balance sheet,realizable value rule is applied?The ending inventory$4eTextbook and MediaAt+Lact cavod 38 minutocagarch

Answered: Question 5 of 5 <> Sunland Frame Camera…

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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WP NWP Assessment Builder UI App x
WP NWP Assessment Player Ul Appli X
n.wiley.com/was/ui/v2/assessment-player/index.html?launchld%33ccc3c1a-22f0-4064-a82c-de9671bd4980#/question
e: Chapter 6
Question 5 of 5
Sunland Frame Camera Shop uses the lower-of-cost-or-net realizable value basis for its inve
December 31.
Net Realizable
Item
Units
Cost per Unit
Value per Unit
Cameras:
Minolta
$163
$154
Canon
154
156
Light Meters:
Vivitar
12
120
112
Kodak
17
120
135
What amount should be reported for inventory on Sunland Frame Camera Shop's balance sheet,
realizable value rule is applied?
The ending inventory
$4
eTextbook and Media
At+
Lact cavod 38 minutocag
arch

Expert Solution

Step 1

The price of the goods still available for purchase and held by a company at the end of an accounting period is referred to as ending inventory. A variety of valuation methods can be used to calculate the dollar value of ending inventory. Despite the fact that the physical number of units in ending inventory remains constant regardless of method, management's inventory valuation affects the dollar value of ending inventory. Ending inventory can be calculated in its most basic form by adding new purchases to beginning inventory and then subtracting the cost of goods sold (COGS). A physical inventory count can result in more accurate ending inventory.