Starbucks sells coffee beans, which are sensitive to price fluctuations. Suppose the following inventory information is available for this product at December 31, 2025. Net Realizable Coffee Bean Units Unit Cost Value Per Unit Caffeinated Coffea arabica 12,000 bags $5.30 $5.24 Coffea robusta 5,200 bags 3.20 3.30 Decaffeinated Coffea arabica 10,000 bags 5.90 6.10 Coffea robusta 4,200 bags 4.60 4.30 Calculate Starbucks' inventory by applying the lower-of-cost-or-net realizable value basis. Starbucks' inventory $
Starbucks sells coffee beans, which are sensitive to price fluctuations. Suppose the following inventory information is available for this product at December 31, 2025. Net Realizable Coffee Bean Units Unit Cost Value Per Unit Caffeinated Coffea arabica 12,000 bags $5.30 $5.24 Coffea robusta 5,200 bags 3.20 3.30 Decaffeinated Coffea arabica 10,000 bags 5.90 6.10 Coffea robusta 4,200 bags 4.60 4.30 Calculate Starbucks' inventory by applying the lower-of-cost-or-net realizable value basis. Starbucks' inventory $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Starbucks sells coffee beans, which are sensitive to price fluctuations. Suppose the following inventory information is available for this
product at December 31, 2025.
Net Realizable
Coffee Bean
Units
Unit Cost
Value Per Unit
Caffeinated
Coffea arabica
12,000 bags
$5.30
$5.24
Coffea robusta
5,200 bags
3.20
3.30
Decaffeinated
Coffea arabica
10,000 bags
5.90
6.10
Coffea robusta
4,200 bags
4.60
4.30
Calculate Starbucks' inventory by applying the lower-of-cost-or-net realizable value basis.
Starbucks' inventory
$
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