What amount should ABC report its total cost of inventory on the 12/31/2020 Balance Sheet?
What amount should ABC report its total cost of inventory on the 12/31/2020 Balance Sheet?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:ABC company follows the principle of lower of cost or net realizable value (NRV) to report its
inventory. The following shows the data related to the inventory on 12/31/2020:
Product Model
Model X
Model Y
Model Z
Model Alpha
Units
20
15
10
30
Pedia
Cost per
$150
110
125
140
unit
NRV per unit
$155
105
115
150
What amount should ABC report its total cost of inventory on the 12/31/2020 Balance
Sheet?
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