A company reports inventory using the lower cost and net realizable value. Below is information related to its year-end inventory: Inventory Quantity Cost NRV Unit A 15 $38 $40 Unit B 23 41 38 Unit C 17 29 33 Unit D 20 15 14 a. Calculate ending inventory under the lower of cost and net realizable value. b. Prepare the necessary adjusting entry to inventory as a journal entry worksheet.
A company reports inventory using the lower cost and net realizable value. Below is information related to its year-end inventory: Inventory Quantity Cost NRV Unit A 15 $38 $40 Unit B 23 41 38 Unit C 17 29 33 Unit D 20 15 14 a. Calculate ending inventory under the lower of cost and net realizable value. b. Prepare the necessary adjusting entry to inventory as a journal entry worksheet.
Chapter10: Inventory
Section: Chapter Questions
Problem 5PA: Use the first-in, first-out (FIFO) cost allocation method, with perpetual inventory updating, to...
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Question
![A company reports inventory using the lower cost and net realizable value. Below is information
related to its year-end inventory:
Inventory Quantity Cost NRV
Unit A
15
$38 $40
Unit B
23
41
38
Unit C
17
29
33
Unit D
20
15
14
a. Calculate ending inventory under the lower of cost and net realizable value.
b. Prepare the necessary adjusting entry to inventory as a journal entry worksheet.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa6843b24-77a8-499a-a301-3b8ef63656e7%2F97a3ca05-fe0c-4e93-9c15-31314bb5c701%2F4iywvr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A company reports inventory using the lower cost and net realizable value. Below is information
related to its year-end inventory:
Inventory Quantity Cost NRV
Unit A
15
$38 $40
Unit B
23
41
38
Unit C
17
29
33
Unit D
20
15
14
a. Calculate ending inventory under the lower of cost and net realizable value.
b. Prepare the necessary adjusting entry to inventory as a journal entry worksheet.
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