### Inventory Valuation for Swifty Video CenterAt the end of the fiscal year (December 31), Swifty Video Center has compiled the following cost and net realizable data for its inventory:| Inventory Categories | Cost Data | Net Realizable Value Data ||----------------------|-----------|---------------------------|| Cameras | $16,800 | $17,220 || Camcorders | $13,300 | $13,580 || Blu-ray Players | $19,600 | $18,060 |### TaskCompute the lower-of-cost-or-net realizable value valuation for the company's total inventory.**The calculation involves comparing the cost data against the net realizable value data for each category and selecting the lower value to determine the total inventory valuation.**#### Lower-of-Cost-or-Net Realizable Value Calculation:1. **Cameras:** Choose the lower between $16,800 and $17,220, which is $16,800.2. **Camcorders:** Choose the lower between $13,300 and $13,580, which is $13,300.3. **Blu-ray Players:** Choose the lower between $19,600 and $18,060, which is $18,060.**Total Inventory Valuation:**- Total = $16,800 (Cameras) + $13,300 (Camcorders) + $18,060 (Blu-ray Players)- **The lower-of-cost-or-net realizable value is:** $48,160Enter the value in the provided space to ensure accurate financial reporting.

Name: ### Inventory Valuation for Swifty Video CenterAt the end of the fisc
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Description: ### Inventory Valuation for Swifty Video CenterAt the end of the fiscal year (December 31), Swifty Video Center has compiled the following cost and net realizable data for its inventory:| Inventory Categories | Cost Data | Net Realizable Value Data

Inventory is usually recorded at the lower of its cost or net realizable value. This is used by applying the principle of conservatism. Using it, the inventory is recorded at its least possible recoverable value.Lower of the cost or net realizable value: $ 48,160 Explanation: Inventory Categories Cost Net Realizable value Lower of the two i) Cost or ii) NRV Cameras $ 16,800 $ 17,220 $ 16,800 Camcorders $ 13,300 $ 13,580 $ 13,300 Blue ray players $ 19,600 $ 18,060 $18,060 Total $ 48,160

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Swifty Video Center accumulates the following cost and net realizable data at December 31. Inventory Cost Net Realizable Categories Data Value Data Cameras $16,800 $17,220 Camcorders 13,300 13,580 Blu-ray players 19,600 18,060 Compute the lower-of-cost-or-net realizable value valuation for the company's total inventory. The lower-of-cost-or-net realizable value

Swifty Video Center accumulates the following cost and net realizable data at December 31. Inventory Cost Net Realizable Categories Data Value Data Cameras $16,800 $17,220 Camcorders 13,300 13,580 Blu-ray players 19,600 18,060 Compute the lower-of-cost-or-net realizable value valuation for the company's total inventory. The lower-of-cost-or-net realizable value

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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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.

Topic Video

Question

### Inventory Valuation for Swifty Video Center

At the end of the fiscal year (December 31), Swifty Video Center has compiled the following cost and net realizable data for its inventory:

| Inventory Categories | Cost Data | Net Realizable Value Data |
|----------------------|-----------|---------------------------|
| Cameras | $16,800 | $17,220 |
| Camcorders | $13,300 | $13,580 |
| Blu-ray Players | $19,600 | $18,060 |

### Task

Compute the lower-of-cost-or-net realizable value valuation for the company's total inventory.

**The calculation involves comparing the cost data against the net realizable value data for each category and selecting the lower value to determine the total inventory valuation.**

#### Lower-of-Cost-or-Net Realizable Value Calculation:

1. **Cameras:** Choose the lower between $16,800 and $17,220, which is $16,800.
2. **Camcorders:** Choose the lower between $13,300 and $13,580, which is $13,300.
3. **Blu-ray Players:** Choose the lower between $19,600 and $18,060, which is $18,060.

**Total Inventory Valuation:**

- Total = $16,800 (Cameras) + $13,300 (Camcorders) + $18,060 (Blu-ray Players)
- **The lower-of-cost-or-net realizable value is:** $48,160

Enter the value in the provided space to ensure accurate financial reporting.

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