Question

Jenks Company developed the following information about its inventories in applying the lower-of-cost-or-net-realizable-value (LCNRV) basis in valuing inventories: Product Cost NRV A $115,000 $125,000 B $95,000 $75,000 C $175,000 $180,000 After Jenks applies the LCNRV rule, the value of the inventory reported on the balance sheet would be:

Answer 1

$365,000

Step-by-step explanation:

The computation of the inventory reported on the balance sheet is shown below:

Product Cost NRV Lower cost

A $115,000 $125,000 $115,000

B $95,000 $75,000 $75,000

C $175,000 $180,000 $175,000

Total $365,000