Starstruck Company is a retailer of Italian furniture and has five major product lines. At year-end, the entity provided the following inventory data: Units Unit cost NRV per unit Sofas 1,020 450 100 1,000 Dining tables Beds Closets 200 500 300 1,500 750 1,600 770 400 Lounge chains 500 250 200 What amount should be reported as inventory at year-end using the lower of cost and net realizable value? a. 1,040,000 b. 1,075,000 c. 1,998,000 d. 2,033,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Problem 12-12 (IFRS)
Starstruck Company is a retailer of Italian furniture and has
five major product lines. At year-end, the entity provided the
following inventory data:
Units
Unit cost
NRV per unit
Sofas
1,020
100
200
1,000
Dining tables
Beds
Closets
500
450
1,600
770
300
1,500
400
750
Lounge chains
500
250
200
What amount should be reported as inventory at year-end using
the lower of cost and net realizable value?
a. 1,040,000
b. 1,075,000
c. 1,998,000
d. 2,033,000
Transcribed Image Text:Problem 12-12 (IFRS) Starstruck Company is a retailer of Italian furniture and has five major product lines. At year-end, the entity provided the following inventory data: Units Unit cost NRV per unit Sofas 1,020 100 200 1,000 Dining tables Beds Closets 500 450 1,600 770 300 1,500 400 750 Lounge chains 500 250 200 What amount should be reported as inventory at year-end using the lower of cost and net realizable value? a. 1,040,000 b. 1,075,000 c. 1,998,000 d. 2,033,000
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