Question

Consider the following information pertaining to Pagoda's inventory: Product Quantity Cost Net Realizable Value Gloves 16 $ 121 $ 155 Shoes 26 26 21 Hats 13 52 42 At what amount should Pagoda report its inventory?

Answer 1

$3,028

Step-by-step explanation:

As we know that

The inventory should be valued at cost or net realizable value which ever is lower

(A) (B) (A × B)

Product Quantity Lower value of cost or NRV Amount

Gloves 16 $121 $1,936

Shoes 26 $21 $546

Hats 13 $42 $546

Total amount $3,028

Hence, the inventory recorded amount is $3,028