Question

Wood Company had the following inventory items on hand at the end of the year. Computing the lower of cost or net realizable value on an item-by-item basis, determine what amount would be reported on the balance sheet for inventory.

Answer 1

$9,280

Step-by-step explanation:

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

(A) (B) (A × B)

Particulars Quantity Cost per item NRV Lower of Reported

Cost or Market Amount

Item A 80 $87 $102 $87 $6,980

Item B 40 $82 $57 $57 $2,280

Total $9,280