Question

Blue Spruce Camera Shop Inc. uses the lower-of-cost-or-net realizable value basis for its inventory. The following data are available at December 31. Units Cost per Unit Net Realizable Value per Unit Cameras Minolta 5 $176 $168 Canon 6 149 152 Light Meters Vivitar 11 125 124 Kodak 10 129 132 What amount should be reported on Blue Spruce Camera Shop’s financial statements, assuming the lower-of-cost-or-net realizable value rule is applied? Total $Enter a dollar amount that should be reported on Unresolved’s financial statements

Answer 1

Total amount $4,388

Step-by-step explanation:

The computation of the amount that should be reported is shown below:

Products Units Cost per unit NRV Lower cost or NRV TOtal

Minolta 5 $176 $168 $168 $840

Canon 6 $149 $152 $149 $894

Light meters 11 $125 $124 $124 $1,364

Kodak 10 $129 $132 $129 $1,290

Total amount $4,388